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[GenTsoChiken]

i got this letter from newegg

Important Message to Our New York Customers

Dear Valued Newegg Customer,

As a result of recent changes in the State of New York Tax Law requiring certain out-of-state retailers to collect and remit sales taxes to the State of New York, we regrettably inform you that Newegg.com must begin collecting applicable state and local sales tax for all orders shipped to New York addresses on or after June 1, 2008.

Qualified business customers can continue to use the Newegg.com Sales Tax Exempt Form.

We value our relationship with you and all of our New York customers. We apologize for any inconvenience caused by this change in New York law and assure you that we will continue to work hard to offer you the best prices, fastest shipping and award winning customer service you deserve.

We look forward to continuing to provide you with the premier online shopping experience for all of your IT and Consumer Electronics needs.

Sincerely,

Bernard Luthi
Newegg.com
Company Spokesperson and
Vice President of Merchandising

so, if you guys planned on getting something from newegg, get it now if you can spare the cash otherwise, you're going to have to save up more money to cover the tax.

[PsiFire]

I hate New York State. I wish my new home were in CT. Fucking assholes. How can they tax interstate commerce? Isn't that a federal responsibility?

[AMDinside]

I got the same email.  NY has to be one of the worst states to live in.  The whole reason I buy stuff online is cause it is usually tax free.

[GenTsoChiken]

How can they tax interstate commerce? Isn't that a federal responsibility?

yes and no. if it was a federal tax, it would be applied to every state but it isn't. in this case, the tax is technically more of a tariff on a certain level of the consumer market.

[AMDinside]

As if NYS doesn't tax us enough.  Thats the final nail in the coffin.  I am moving to PA when i get my own place.

[PsiFire]

I did some reading and they are really slinging/stretching the bullshit here.

NYS is taxing the internet retailers based on a ruling from the US Supreme Court - Quill v North Dakota. In the ruling it states that out-of-state retailers can not be required to collect tax on purchases made in states where they do not have a physical presence.

GREAT you say! That backs up our case that this shouldn't be legal. Well not so quick.

NYS is interpreting the ruling as follows and this is where it gets interesting and the bullshit starts: They claim that many/most retailers have online affiliates whom refer web users to their site. Know all those ads you see on webpages and whatnot that redirect you to Amazon/Newegg/etc? Well, those are the affiliates to which they refer. NOW, NYS claims that if EVEN ONE of those affiliate websites is BASED in New York State, that they are thusly a "presence" of the retailer in New York State and are therefore required to collect sales tax.

Bullshit? Hell yeah. They are AFFILIATES, not a fucking part of the operation.

Amazon.com has already brought suit against New York State. Local retailers are calling it a victory since they claim that the online retailers are stealing their business. Sure it makes sense. Some people go to the store, play with the items and then go online to buy them tax free. But I don't believe it's that many. This new law will actually swing the pendulum the opposite direction and go against online retail cause now you will have to pay Tax AND Shipping on your online purchases whereas local purchases will only charge you tax (tho maybe moreso for local city taxes etc).

I hope they strike this crap down because other states are bound to follow suit if it isn't.

[coldflame]

Fuck
Gotta get paid, now!

[Musicgamer20]

Damn that sucks.

[kryogenix]

For some reason this isn't affecting me.

[PsiFire]

Everyone ship to Kryogenix's house.

It IS possible that they had to suspend the date the law took effect due to the lawsuit. I have no tried ordering anything from Newegg or any other large online retailer lately, so I don't know if it affects me either.

PS....just tried to post an order and it tacked on Tax. Ironically the tax is less if I ship to Jersey vs here.

[Nikita]

Jersey is 7%

[$hellCoder]

Major bullshit...  I can't believe this.  Not to mention, advertising is not a presence, it is advertising (affiliate or otherwise).

[PsiFire]

Prime example of the politicians/lawyers slinging bullshit through a pinhole size loophole in the law.

[Popsikle]

We pay tax in NJ because Newegg has a warehouse here.

[PsiFire]

Yeah, but you can order from other places like Amazon or Mwave and not get hit by the tax.