New York State and Amazon are battling the new sales tax law. A new law requres out-of-state online companies to collect NYS sales tax from shoppers in New York. Amazon is challenging the constitutionality of the new law. New York claims the law closes a "tax loophole".
Tom Bergin for the NYS Department of Taxation and Finance has a point, "Everyone in New York state either pays sales tax on articles that they buy or is required to pay sales tax on articles that they buy. This is not a new law, this is just amending the law to bring some of the new technology into compliance."
Amazon argues the new law is overly broad and vague, and violates the commerce clause of the constitution because it imposes tax-collection obligations on out-of-state businesses.
For years, NY residents who did not pay sales tax on their purchases have been required to pay the use tax on their annual income tax returns.
Thursday, May 8, 2008
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