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August 26, 2008
Newegg Defies State of New York with New Tax Policy
Electronics merchant Newegg.com has decided to not charge taxes in accordance with a new New York state law requiring e-commerce sites to collect sales taxes. The law, which went into effect June 1, is highly controversial. Amazon.com is suing the state of New York, saying the law is illegal and unconstitutional.
Opponents of the sales tax point to a 1992 Supreme Court ruling that said a mail-order company only has to pay taxes in the states where it has operations. Newegg only charges sales taxes in California, where the merchant is headquartered as well as Tennessee and New Jersey, where it has operations.
What do you think of Newegg's defiance? Is New York's tax law illegal? Sound off in the comments.
via Internet News, hat tip to Al Scillitani
Posted by Nathania Johnson at August 26, 2008 9:38 AM
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Comments
Good for Newegg! What New York is trying to do will create headaches for thousands of online retailers and will become a nightmare if more states adopt similar laws. This will also impede new businesses from operating online.
Posted by: Dave at August 26, 2008 11:00 AM
I agree! Good for Amazon and Newegg. This stifles business for online retailers and looks to me like NY simply got lazy and saw a way to have others do their tax collecting work for them.
Posted by: Travis at August 26, 2008 12:57 PM
keep up the good work new egg. it doesn' matter in which state one lives, this affects all of us
thank you al and nathan.
Posted by: leon weis at August 26, 2008 1:03 PM
I believe that each state should collect taxes the way it sees fit. If a company is not bringing jobs to a state, then I see no reason to give it any tax breaks
Posted by: Noah David Simon at August 28, 2008 5:22 AM
