In 2008, New York enacted a measure that requires many large online retailers to begin collecting sales taxes on purchases shipped to the state, even if they have no operations or employees there.
The measure states that any online retailer that generates more than $10,000 in sales via in-state sales affiliates must collect New York sales tax. Many online retailers, including Amazon.com and Buy.com, have sales affiliates nationwide that link to the retailer's web site and are paid commission on any sales generated from their referrals. New York's measure clarifies state tax law to say that sales affiliates based in the state are representatives of the online retailer. This means that the retailer has nexus (i.e., a physical presence) in the state and is required to collect state sales taxes.
In all, more than 30 companies are covered by New York's provision. According to the New York State Department of Taxation and Finance, in the first six months since the provision became law, the state has recouped $46 million. Officials expect to recoup $68 million in FY 2009-2010.
Several other states are now considering legislation modeled on New York's.
How about instead of taxing, taxing, taxing... We Start Making Jobs!
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How about instead of taxing, taxing, taxing... We Start Making Jobs!
... okay, I put the "a" in "instead" but otherwise... I'm thinking you should be sitting in the Governors office soon. They NEED your thinking...
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