New York Tells Amazon to Start Collecting Their Sales Tax

New York recently passed a state budget that requires Amazon.com (and other online retailers) to start collecting NY state sales tax. Amazon doesn't have any brick-and-mortar presence there, but NY argues that because Amazon has affiliates in the state, the company is obligated to start collecting the sales tax on purchases made there.

In theory, New Yorkers already owe the tax. Amazon's just never had to collect it.

Of course, neither Amazon nor New Yorkers are pleased that they might have to start doing so. Amazon tried to claim it would be too difficult to do, but NY lawmakers weren't swayed.

People are predicting court challenges, boycotts, or even Amazon shedding its NY-based affiliates. Some even foresee the beginning of the end of tax-free Internet shopping.

As Washingtonians, of course, we've always paid sales tax on Amazon purchases. So while we're sympathetic to consumer outrage, we also think it's overblown. That's an acorn falling, not the sky.

We can't google up any stats about Amazon's popularity in Washington versus other states, but given the number of smiley Amazon boxes that show up on coworkers' desks, people will pay it--even at 8.8%.

"Amazon.com" by mraaronmorris, from our Flickr pool. Thanks!