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i do not know how it is anywhere else, but looks like i will be paying tax on my Newegg orders from now on ~ this email came today:

Dear Valued Newegg Customer,
As a result of recent changes in the State of New York Tax Law requiring certain out-of-state retailers to collect and remit sales taxes to the State of New York, we regrettably inform you that Newegg.com must begin collecting applicable state and local sales tax for all orders shipped to New York addresses on or after June 1, 2008.

Qualified business customers can continue to use the Newegg.com Sales Tax Exempt Form.

We value our relationship with you and all of our New York customers. We apologize for any inconvenience caused by this change in New York law and assure you that we will continue to work hard to offer you the best prices, fastest shipping and award winning customer service you deserve.

We look forward to continuing to provide you with the premier online shopping experience for all of your IT and Consumer Electronics needs.

Sincerely,

Bernard Luthi
Newegg.com
Company Spokesperson and
Vice President of Merchandising

they must of open up a office or warehouse in New York .

Actually, they're fighting it currently. Aparently,their advertising is there. They said that they'd move it out of state before charging tax in NY.

was googlin' around and just found this ~

NY has changed the interpretation of what is meant by a physical in-state presence. Before, an in-state presence meant having a B&M store or facility within the state. This interpretation has now been expanded to include AFFILIATES. So any website with affiliates within NY selling to NY residents will have to collect taxes on purchases.

Sounds like greed to me.

Wow, affiliates can be stretched as far as even one employee working there like a webmaster, or a company banks there...

Defintions from Dictionary.com
1. To adopt or accept as a member, subordinate associate, or branch: The HMO affiliated the clinics last year.
2. To associate (oneself) as a subordinate, subsidiary, employee, or member: affiliated herself with a new law firm.
3. To assign the origin of.

v. intr.
To become closely connected or associated: The two unions voted to affiliate.

n. (-ē-ĭt, -āt')
A person, organization, or establishment associated with another as a subordinate, subsidiary, or member: network affiliates.

Wow, I just saw an update & it looks like Newegg will actually be keeping their "affiliates" in NY, so taxation it is. The good news is that Overstock completely pulled everyone out of NY.

It is pretty much ludicrus to charge what will probably ammount to millions of dollars in taxes for having maybe 5 people working in the state.

This reminds me of the Ohio Tax law were if you purchase an item out of state online, you're supposed to claim the sales tax if you didn't it to the state you bought it from. I'm gueesing the New York Law will eventually be challenged in court. Buying something from another state over the internet is like physically going to another state to buy it. You don't have to pay taxes to your own state on something you drove to another state to buy (YET). The same should be true in buying on the internet.

normalicy wrote:Wow, I just saw an update & it looks like Newegg will actually be keeping their "affiliates" in NY, so taxation it is. The good news is that Overstock completely pulled everyone out of NY.

It is pretty much ludicrus to charge what will probably ammount to millions of dollars in taxes for having maybe 5 people working in the state.

i read about overstock, too,,

well, i guess that leaves buy.com for my purchases,,, i have nothing near me except a radio shack

This would be a good time for Newegg to team up with Amazon on this. They have to be smacked down in court, it is ridiculous to make such a broad law.

This is really nothing new except that they're going after the seller in this case.

Most states have laws now that require PURCHASERS to report all Internet purchases so taxes can be collected. My state, Florida, is one of them.

Needless to say NO ONE actually complies with this law and it's unenforceable.

The problem is that states are hemorrhaging tax revenues, especially now with the economy in the dump. Those services you rely on? Someone has to pay for them. States have always grumbled about losing sales tax revenue to out-of-state online retailers.

Get used to it. Sooner or later there's going to be some kind of federally enforced sales tax on all Internet purchases. Personally I don't see the big deal if it's enforced in all states.

Right now we pay sales tax on purchases from Dell's online store here in Florida. There's a few other online retailers that charge me tax as well like Crucial. If I bought it at a store around the block I'd have to pay taxes on it anyway, so what's the big deal?

No I don't like it, but I'm realistic. You think the state pays for public works projects with money from the tooth fairy? It's basic economics.

The big deal is people do not like to be taxed. When you get taxed time and time again, sometimes you want relief somewhere.

The more likely of a result for any federal regulation is the requirement that an online retailer collect the sales tax for the state its headquarters resides in, unless the person lives in the state where they have a vested interest like a warehouse.

But, the federal government has so many important things it needs to do, it would be insulted if it wasted time with something as trivial as this.

Forcing this will effectively kill much of online competition for local retailers. The shipping some of the time can outweigh the local cost of getting an item if both were taxed. Not all places offering free shipping on all items.

The states are not going to benefit much from doing this kind of thing anyway, as the economy is slumping downward. It is effectively past the part of a basic recession. In this county, they collect a 1 percent additional over state tax for things such as roads and the sort. It actually has proven far more effective in the manner.

Basic economics by the way, would imply collecting taxes from sources that have the most to collect from, that would be the upper class. The majority of taxes come from the middle class and lower.

I know people would whine & complain, but I think it's about time that we just do a general income & property tax. I understand the other kinds of taxes & their purposes, however, those systems are quickly breaking down & leaving local places suffering.

Flat Tax FTW! But I don't vote, so I don't complain

eGoCeNTRoNiX wrote:Flat Tax FTW! But I don't vote, so I don't complain

lol


well,, it was nice while it lasted, that is for sure,,

and i know we all report our taxable online purchases { i cannot find just the right smilie to put here }