Amazon tax begins; are the internet “tax-free” days gone?
On June 1st, the Amazon.com sales tax (commonly called the “Amazon tax” for reference purposes) went into effect for residents of New York state. Previously, tax laws stated that e-tailers only needed to charge tax wherever they had a physical presence. As of yesterday, the rule applies to their affiliates as well, meaning that any advertiser that is based out of New York is bad news for Amazon.
As expected, Amazon is filing suit, claiming that the affiliates are independent and merely advertise the company. The company also claims that it can’t determine where all of it’s many affiliates are located. Overstock.com has ceased operations with its New York based advertisers to avoid the tax.
On another note, although most businesses are only required to charge a tax in the states that they are located in, the purchaser is supposed to pay their respective state sales tax on the item on their tax returns. Many aren’t aware of this, and most that are don’t pay it.
[via RealTechNews]
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