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Old 12th May 2008, 12:06 PM   #1
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Default Amazon Vs. The State Of New York (Internet Tax)

For those of you who don't already know, Amazon has sued The State of New York over a proposal regarding internet tax.

If you are an online vendor selling through affiliate programs to New York residents, and you sell more than $10,000 to New York buyers through online affiliate sellers, you now are subject to New York taxes on such sales.
Quote: is fighting the law hard, because it makes so many sales through affiliates and will have to collect and remit sales taxes. has sued the State of New York, on the grounds that the law is unconstitutional. So we have not yet seen the end of this issue.
It's disappointing to me to see the State of New York attempting to justify this as "leveling the playing field" and I wish Amazon the best of luck in their fight as they are also helping small businesses by doing so.

Anita sums it up nicely in her two points at the end of her post titled: Sliding Down the Internet Tax Slippery Slope over at Small Business Trends.

Do you purchase on the internet because of price - or is it more than that? Convenience, saving fuel by not having to physically shop around, variety? For me, personally, it's the convenience. I don't want to pay $3.70 per gallon to drive around and do price comparisons or scout out the product I'm after at a variety of physical locations when I can do it all from my living room. I'll even PAY MORE for the product for that convenience.

And I have to agree with Anita in that. . .first New York - then all 50 states. It has the potential to turn into a nightmarish situation.

How about you? Your thoughts on this?

Staci Wood | Small Business Trends Radio | Small Business Trends
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