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Author Topic: Newegg will begin charging NY'ers tax [UPDATED and CHANGED! 8/21/2008]  (Read 22685 times)

GideonX

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Just got this in the mail:

Quote
Dear Valued Newegg Customer,

As a result of recent changes in the State of New York Tax Law requiring certain out-of-state retailers to collect and remit sales taxes to the State of New York, we regrettably inform you that Newegg.com must begin collecting applicable state and local sales tax for all orders shipped to New York addresses on or after June 1, 2008.

Qualified business customers can continue to use the Newegg.com Sales Tax Exempt Form.

We value our relationship with you and all of our New York customers. We apologize for any inconvenience caused by this change in New York law and assure you that we will continue to work hard to offer you the best prices, fastest shipping and award winning customer service you deserve.

We look forward to continuing to provide you with the premier online shopping experience for all of your IT and Consumer Electronics needs.

Sincerely,

Bernard Luthi
Newegg.com
Company Spokesperson and
Vice President of Merchandising

I knew something like this was on the horizon but I sure wasn't expecting it so quickly. Another reason why living here in NY sucks major ass.
« Last Edit: August 21, 2008, 11:29:11 PM by GideonX »
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RaDragon

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Re: Newegg will begin charging NY'ers tax
« Reply #1 on: May 28, 2008, 08:59:45 PM »

Oof! Soz to hear that. I wish Amazon had more product selections! That's the place where I do most of my online shopping now. Huzzah for Amazon Prime ^_^
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urgannagru

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Re: Newegg will begin charging NY'ers tax
« Reply #2 on: May 28, 2008, 10:57:39 PM »

pft, whatever, try living in california, the only place online shops call home. we pretty much always get charged online tax. boo hoo for you :p
(though it sucks for you to be charged tax too now i suppose)
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GideonX

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Re: Newegg will begin charging NY'ers tax
« Reply #3 on: May 28, 2008, 11:13:23 PM »

You don't get charged tax from Amazon. I'm sure there are others :)

This should not be enforced in NY as Newegg (for example) does not have a physical presence in this state. Amazon is currently fighting NY state in court over this. If they lose, expect other states to follow suit in collecting tax on items purchased over the internet.
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MaxamusCrasious

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Re: Newegg will begin charging NY'ers tax
« Reply #4 on: May 29, 2008, 07:54:52 AM »

Hmm... I could have sworn that Newegg has a warehouse or something in NY, or maybe it was NJ... (*EDIT* it is NJ)

The way it works here in Michigan, is through our "Use" tax. If I buy something online from a retailer in Michigan, I should be charged sales tax. But if I buy something online from a retailer that is not in MI, regardless of if they charged me tax, I am supposed to claim it on my state taxes. I guess the only bright part about it is if I am charged tax from a state that has a higher tax rate than Michigan, they will refund me the difference between our tax rate (6%) and the other states. But if the other state has a lower tax rate, I am expected to pay the difference between the two rates. The same rules apply to me physically driving across the border and buying something in another state.

They have been attempting this tax for years now, and it is more or less something that is slapped on to the tax forms that nobody notices, and if they do they just ignore it.

I would like to see the internet as a tax free sales ground (unless they have a physical presence in your state). But of course that will never happen, so I think that online taxation should be just like if you left the state to buy the goods, you pay whatever the local tax rate is, and thats the end of it. If the retailer for some reason decides not to charge tax, thats their issue to take up with their local goverment. 

urgannagru

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Re: Newegg will begin charging NY'ers tax
« Reply #5 on: May 29, 2008, 10:44:37 AM »

yeah, from what i have read in the news there will be many people challenging the new tax that NY is trying to collect. it seems nobody agrees with NY in thinking that internet sales aren't interstate commerce.
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merlinicorpus

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Re: Newegg will begin charging NY'ers tax
« Reply #6 on: June 01, 2008, 01:06:04 AM »

You would think that being in Kansas would exempt you from tax, but as it turns out a lot of companies have warehouses here.  The largest of all the Amazon warehouses is actually just a couple hours away from here.
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Melancholinpolly

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Re: Newegg will begin charging NY'ers tax
« Reply #7 on: June 01, 2008, 11:45:41 AM »

i stopped shopping at amazon because of the god damn state tax, now I'm not going to shop at newegg anymore. this f***ing sucks.
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blafrisch

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Re: Newegg will begin charging NY'ers tax
« Reply #8 on: June 01, 2008, 04:10:08 PM »

NC rocks.  The only store that kinda, sorta matters to me with tax is Tigerdirect and it's like a super convenience because it's down the street.  Anyone want to come visit my great state?
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Hak Foo

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Re: Newegg will begin charging NY'ers tax
« Reply #9 on: June 02, 2008, 12:49:45 AM »

The odd thing is that I thought a lot of 'sales' taxes were technically 'transaction privilege' taxes, nominally levied on the retailer.  In theory, they could eat the tax, but generally, they pass it on to the customer.

One would expect that from an implementation standpoint, putting the onus on the retailer makes more sense-- there are fewer retailers to audit, and they keep detailed records for other reasons, making it simpler to sanity-check their claims.
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