New York State adds internet sales taxes

Found this interesting link on Drudge the other day...looks like Amazon won't take it lying down:

http://wcbstv.com …nternet.tax.2.7​07820.html

Already being discussed in "Market Watch" https://photography-on-the.net/forum/showthre​ad.php?t=492364

This story needs some better information for more accurate interpretation! It might merely mean that a NY resident buying from a NY internet-only retailer has to pay sales tax, but a CA resident buying from the same NY internet retailer still does not pay NY sales tax (and, in theory at least, the CA resident pays CA a use tax for purchases made outside CA)

As a CA resident, I already expect to pay CA sales tax when purchasing from a CA retailer via internet. Has NY only just now figured out the sales tax leakage for NY residents buying from NY retailers via internet?!

it means this (below) : so if you buy from J&R on amazon and live in NY,e xpect to pay tax.

In the midst of a budget crisis, New York is now telling Amazon and certain other large Internet-only vendors they must collect state and local sales tax -- if they allow sales via "click-throughs" from New York-based Web sites. The new rule is set to go into effect on June 1.

Obviously, I'm really not familiar with the specific state laws of NY or other states.

Legally (where I live) any retail sales, be they on-line or over the counter, technically should involve applicable taxes - even if the item is purchased from another jurisdiction.

When the sale is within the jurisdiction, the retailer must collect the tax (or face the penalties). When the sale is outside the jurisdiction, the buyer is legally required to remit the tax, although in practice this only happens in the case of vehicles (can't register the vehicle without proof of tax paid).

To date, the cost of enforcement has been greater than the benefits received in the form of tax.

Because of the enormous amount of tax money involved, I wouldn't be surprised that this will eventually be applied to cross border sales (provincial or state). And considering that NAFTA may cover this situation (or could be modified to cover it), it is a distinct possibility that it could apply to any transaction in North America (Canada, US, and Mexico).

Certainly when we in Canada buy from B&H, we must pay the federal tax, and in most cases on the provincial tax too.

The internet is going to become less attractive. There are two parties that will change this - the "brick and mortar" stores and the good old government that wants your tax dollars. The internet has been immune so far, but that is going to change.

If it is sold by and ships from Amazon to NY, the sales tax should not apply. This will affect the NY retailers selling on Amazon to NY residents, but not selling to the rest of the nation.