Sick of hearing about taxes yet? Well, hold tight, our representatives in the New York state legislature have a little treat for residents who enjoy online shopping - more taxes!
If you buy something online, you're largely exempt from state taxes you might incur if you'd made the same purchase in an actual store. Technically, you're supposed to report your online purchases and pay taxes on them, but no one really does that.
New York lawmakers last week, however, approved a budget package that includes a bill that would force online stores like Amazon.com to collect sales tax.
Retailers have long argued that they don't have to collect state sales tax if they don't have a physical presence in a particular state - an position backed up by a 1992 Supreme Court ruling. What might cause problems for Amazon, however, is its affiliate program - which has participants all across the country.
appscout973:http://www.appscout.com/2008/04/ny_lawmakers_revive_online_tax.php
Affiliates can place links to Amazon on their personal Web pages and collect money if someone clicks on that link and makes an Amazon purchase. Under the law passed by New York, however, if a writer based in Brooklyn has an Amazon affiliate link on his Web site or blog, Amazon must collect sales tax from anyone who makes a purchase through that writer's link since he is based in New York - even if Amazon has no physical presence in the state.
Only affiliates who make at least $10,000 from affiliate programs would be subject to the New York law, but that could still be a headache for retailers.
New York Gov. Paterson is expected to approve the measure, as it ...
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