Amazon Inc. has sued the state of New York over a tax law that was implemented in early April. The law requires out-of-state online companies to collect sales tax on items shipped to New York. Amazon claims the law is unconstitutional, while brick-and-mortar companies believe the law allows for fair competition. Watch the full report from WebProNews Reporter Abby Prince on your source for Breaking eBusiness and Search News.
Taxation Without Representation
Does the title here sound familiar to anyone? It is one of the reasons that the colonists tossed all that tea overboard into Boston Harbor and started the American Revolution against the King of England.
Oh my how we have forgotten our history.
Now New York has become a gangster, or rather is using gangster tactics, to force all it’s citizens who shop online to avoid the taxes into paying them via forcing the online retailer to charge the NY State tax and pay the state OR suffer an audit for back taxes. This law is to go into effect June 1, 2008. IF the online retailer registers by then and starts collecting and paying NY those taxes, then NY guarantees they will NOT go after the retailer for back taxes owed for the past few quarters.
I’ve actually been waiting for someone to do this. I knew it was coming when they went after the cigarette internet sellers for customer lists and started sending their citizens tax bills for the taxes they didn’t pay by buying cigarettes online. And warm, understanding people that the State employs, gave these poor souls all of 30 days to pay up or face penalties and interest charges. Some States went back as far as 3 years and some folks, mostly retired too, were hit with back tax bills in the thousands that they had NO way to pay. The States in their compassionate fashion, agreed to payment plans that included PENALTIES AND INTEREST.
The hatred against tobacco allowed them to get away with it, and many of those citizens who cheered it on are now going to get a taste of that.
Someone correct me if I’m wrong, but isn’t blackmail illegal? Isn’t threatening considered bullying?
New York Goes Gangsta With Tax LawBy Mike Sachoff – Tue, 05/06/2008 – 9:30am.
Makes sellers offer they can’t refuse
Online retailers doing business in New York will be required to register with the state beginning June 1, 2008 to collect taxes, or face audits for prior quarters for failing to register.
Amazon.com is suing the New York State Department of Taxation and Finance (DTF) over a new state law that requires Internet retailers to collect sales tax on purchases shipped to state residents.
Amazon has argued that since it does not have a physical presence in the state that it should not be required to collect taxes on shipments going to New York. “Amazon has no physical presence in New York,” according to the suit. “It does not own, lease, or otherwise occupy any physical property in the state, and none of its employees works or resides in the state.”
In addition Amazon says the New York law is unconstitutional based on a 1992 U.S. Supreme Court ruling that claims states are prohibited from requiring out of state retailers to collect sales tax unless the company has a physical presence in the state.
In the Quill v. North Dakota case, the Supreme Court re-established the rule that a state could not impose sales tax collection on a business unless the company had employees or property in the state.
Read the FULL STORY here.
May 6th, 2008
Check out the Video here.
I suspect that checkpoints at all the bridges and state line roads will be next to nail all those criminal tax evaders who have the nerve (and the means) to travel across state lines for tax-free, or at least lower taxed, shopping. And let us not forget all the bus depots, train stations and airports. My sister loves to visit her best friend in Delaware, and goes shopping like mad every time because there is NO sales tax in Delaware. She won’t be able to do that much longer from what I can see.
Article 1 Section 9 of the United States Constitution clearly states:
No Tax or Duty shall be laid on Articles exported from any State.
Maybe it’s just me, but if I buy something online that is shipped from another state, is that state not exporting an article to me? WHAT are these legal eagles thinking to do things like this?
Don’t say we (we=smokers) didn’t try to warn you, we did…………but what did we know, we were just stupid addicted smokers trying to evade the sales tax, right? While I would love to sit back and laugh now, but I can’t. I can’t because in order to fight for MY right to be free to choose, I must also fight for your rights. THIS is the one thing smokers have been trying to get through to everyone. It was never about smoking with us, it was, AND IS, about liberty, freedom of choice, and protecting the very foundation this country was built on.
The blatant, outright disregard for the Constitution is getting out of hand. We need to stop this outrage. IF the States are so hard up for money, they need to lower their sales tax rates which might encourage the citizens of that State to actually buy locally. This is a no-brainer! It doesn’t require a degree in advanced economics.
Do you still think this country is not sliding into a fascist/socialist state?