Last updated: February 21, 2008 - 12:07pm
AMAZON OPPOSES SPITZER PLAN TO TAX NEW YORKERS FOR ONLINE PURCHASES
[SOURCE: Associated Press]
Amazon.com is fighting Gov. Eliot Spitzer's (D) plan to require out-of-state online companies to collect New York state sales tax on goods they send to addresses in New York -- the most recent cash-strapped state to propose the tax. Gov Spitzer estimates in his budget that the state would gain $47 million by requiring Internet giants such as Amazon.com to collect state sales tax. If that portion of the budget is passed, retailers will start being required to collect the taxes. New Yorkers are currently on an honor system to report their online spending when they file their state tax returns. "This would be a radical departure from anything that's being done anywhere in the country," said Paul Misener, Amazon's vice president of global public policy. The policy would apply to companies that don't have a brick-and-mortar presence in New York but have at least one person in the state who works as an online agent - basically someone who links to a Web site and receives commissions for related sales.
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