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Newegg Defies New York Sales Tax Law

Posted by kdawson on from the not-expanding-here-thanks dept.

JagsLive informs us that the electronics retailer Newegg.com is defying New York lawmakers; it has suddenly stopped collecting sales tax from New York online shoppers. The "Amazon tax," which went into effect June 1, requires online merchants to collect sales tax if they have any affiliates in the state. Amazon is complying but has sued the state on constitutional grounds. Overstock.com dropped all of its New York affiliates and then joined the Amazon lawsuit. Newegg started out complying with the law on June 1, but stopped collecting taxes for New York on August 21. From Newegg's letter to its customers: "After careful review and consideration, we are pleased to inform you that we have stopped collecting New York sales tax, effective August 21, 2008," reads an email the company tossed at customers late last week, including at least one loyal Reg reader. "This decision was driven by your direct and candid feedback and our continued commitment to you as our valued customers."

7 of 635 comments (clear)

  1. Taxed to death by Anonymous Coward · · Score: 3, Funny

    Thats what we NY'ers are. Newegg is now back on the top of my to purchase list.

  2. Re:The Register copy and paste? by ojintoad · · Score: 5, Funny

    How can I say you must be new here when your uid is lower than mine by more than half a million?

  3. Uh oh! by Wellington+Grey · · Score: 3, Funny

    New York estimates that the provision will generate $50 million in revenue for the state in the fiscal year. Tax experts look to other cash-strapped states to adopt similar measures if the New York law holds up in court.

    Boy, I wish I could raise $50 million without providing any additional benefits to anyone. Is there anyway to donate to Amazon/Newegg's legal defense team? : )

    -Grey

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  4. Dear IRS, by Rie+Beam · · Score: 5, Funny

    After careful review and consideration, we are pleased to inform you that I have decided to stop paying my Federal and State tax, effective August 27, 2008.

    This decision was driven by your direct and candid feedback and our continued commitment to you as our valued collection agency.

  5. So NY wants to collect tax from the whole USA by Viol8 · · Score: 4, Funny

    Its not called the Empire state for nothing!

  6. Re:Why both candidates are retards. by snspdaarf · · Score: 2, Funny

    Damn! I think I would vote for you in November!

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  7. Re:The Register copy and paste? by slimjim8094 · · Score: 2, Funny

    You must be new here.

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