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Newegg Tax In New York Startin June 1st
First it was amazon, now newegg, i'm moving out this state.


"Important Message to Our New York Customers
May 23, 2008

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"
05-25-2008, 04:48 PM

 
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By law, you are ALREADY supposed to pay USE TAX, although only a tiny percentage of New York residents bother.

Even if Newegg don't charge SALE TAX, if you don't pay USE TAX, you are already breaking the law (which is not enforced by New York State in any event).

Newegg, Amazon, et al. DID NOT suddenly decide to charge its NY customers tax; NY has changed the interpretation of what is meant by a physical in-state presence. Before, an in-state presence meant having a B&M store or facility within the state. This interpretation has now been expanded to include AFFILIATES. So any website with affiliates within NY selling to NY residents will have to collect taxes on purchases. Thus, Overstock has abandoned its NY affiliates so that it can still sell to its NY customers without collecting taxes on purchases.

Of course, Overstock has generated considerable goodwill with its customers in standing first with them instead of independent website operators who cash in on affiliate revenue. Any Internet retailer who temporarily suspends their New York based affiliates does -NOT- have to impose any sales tax on NY residents at all. Sounds like a true test to see who they value more - their customers or their affiliates.

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Last edited by dampier; 05-25-2008 at 08:49 PM..
Old 05-25-2008, 04:54 PM #3
Violator is offline Violator
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NY Sucks. It doesn't matter how much tax they collect because they will always bumble the money away regardless.
 
Old 05-25-2008, 04:55 PM #4
MrPobears is offline MrPobears
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I knew it was coming. As soon as that blind gov said Amazon had to collect tax, I knew Newegg was gonna get hit
 
Old 05-25-2008, 04:56 PM #5
JCMAN is offline JCMAN
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Uh, doesn't this violate interstate commerce? Newegg has no major facilities or affiliates (that I am aware of) in NYS.

And there's a spot on the tax return for out of state internet purchases for the consumer to fill out. Isn't that double dipping?
 
Old 05-25-2008, 04:58 PM #6
ssjmichael is offline ssjmichael
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It's going to be applicable with every retailer online eventually. It really sucks.

Quote from JCMAN View Post :
Uh, doesn't this violate interstate commerce? Newegg has no major facilities or affiliates (that I am aware of) in NYS.

And there's a spot on the tax return for out of state internet purchases for the consumer to fill out. Isn't that double dipping?
It's either/or here, so no double dipping. It's being done because people don't really pay their taxes for online purchases as you're apparently supposed to do. This way, they're making sure it's collected.

Last edited by ssjmichael; 05-25-2008 at 04:58 PM.. Reason: Automerged Doublepost
 
Old 05-25-2008, 04:59 PM #7
TheBay408 is online now TheBay408
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that's SCREWEGG for you NY'ers!, we still get screwed here in California
 
Old 05-25-2008, 05:00 PM #8
ssjmichael is offline ssjmichael
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Quote from TheBay408 View Post :
that's SCREWEGG for you NY'ers!, we still get screwed here in California
Yeah, it's newegg's fault for being forced to tax new yorkers
 
Old 05-25-2008, 05:08 PM #9
gmm6797 is offline gmm6797
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Well, looks like I will be shopping other places, sorry NewEgg, that do not charge tax... as even when store X has higher prices and no tax, that is where I save money, that is where I go
 
Old 05-25-2008, 05:10 PM #10
JCMAN is offline JCMAN
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Newegg COULD drop NY based affiliates (like overstock) or join with Amazon against NYS via lawsuit, challenging the constitutionality of the law. Either is preferable to me (as a long time Newegg customer).
 
Old 05-25-2008, 05:13 PM #11
keyword is offline keyword
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Will they start taxing other states, too, or is that just a NY exception?
 
Old 05-25-2008, 05:15 PM #12
LiTeFLiGhT is offline LiTeFLiGhT
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why are you people bitching and moaning about getting taxed? over here in california we get taxed on everything at about 8.75%.
 
Old 05-25-2008, 05:15 PM #13
ssjmichael is offline ssjmichael
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Quote from keyword View Post :
Will they start taxing other states, too, or is that just a NY exception?
Just new york. Our shitty blind governor approved the law for NY state
 
Old 05-25-2008, 05:15 PM #14
nope89 is offline nope89
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Quote from keyword View Post :
Will they start taxing other states, too, or is that just a NY exception?
just NY for now. Other state's will follow suit if amazon loses their lawsuit.
 
Old 05-25-2008, 05:15 PM #15
ssjmichael is offline ssjmichael
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Quote from LiteFlight View Post :
why are you people bitching and moaning about getting taxed? over here in california we get taxed on everything at about 8.75%.
You get taxed online for stores that aren't in CA? Like Amazon for instance?
 
 


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