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New York State Internet Tax Question? Archived From: Finance

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as most know, Amazon.com started charging tax to it's New York State residents due to some bogus law that says they have to charge if they have a advertiser in the state. Amazon.com, as well as Newegg.com are sueing NY state to repeal this law.

If the repeal does succeed, will the taxes we've paid from the date the law was enacted be refunded? I did a Google search and didn't see any discussions on the topic.

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From what I have read the appeal is not on very solid ground. This is according to the WSJournal. The chance of the appeal succeeding are slim. I live in NY too and hope it does succeed but I am not counting on it.

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Don't they just remit the taxes paid to the appropriate state taxing agency? And that if you did not pay taxes then, you're supposed to declare that and pay in your (state?) income tax? Why would they return the tax just so you can skip on paying it? If they've already collected it, I'm thinking they just forward it to the appropriate agency.

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anthonyu said:Don't they just remit the taxes paid to the appropriate state taxing agency? And that if you did not pay taxes then, you're supposed to declare that and pay in your (state?) income tax? Why would they return the tax just so you can skip on paying it? If they've already collected it, I'm thinking they just forward it to the appropriate agency.

Yup. Even before this law was passed we were supposed to pay NY Sales tax on internet purchases. Since no one really ever paid, NY state decided to move the burden of collecting tax from the individual to the store, the same in any brick-and-mortar store.

So, even if the law were repealed/overturned the tax still needs to get paid and there's no need to refund something to you that you are going to pay back to the state in a few months.

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Ank329 said:So, even if the law were repealed/overturned the tax still needs to get paid and there's no need to refund something to you that you are going to pay back to the state in a few months.If the sales tax revenue collected by the companies and remitted to the state is returned to the companies, then the companies will be obligated to return the amount of tax you paid to them. Otherwise, you will not see the money again. This is all dependent on the outcome of the case. Whether the funds are returned to the companies or remitted to another agency should be at the discretion of the judge/jury.

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Ank329 said:anthonyu said:Don't they just remit the taxes paid to the appropriate state taxing agency? And that if you did not pay taxes then, you're supposed to declare that and pay in your (state?) income tax? Why would they return the tax just so you can skip on paying it? If they've already collected it, I'm thinking they just forward it to the appropriate agency.

Yup. Even before this law was passed we were supposed to pay NY Sales tax on internet purchases. Since no one really ever paid, NY state decided to move the burden of collecting tax from the individual to the store, the same in any brick-and-mortar store.

So, even if the law were repealed/overturned the tax still needs to get paid and there's no need to refund something to you that you are going to pay back to the state in a few months.

I believe there is the option of taking a standardized charge instead of itemizing. So, the actual percentage paid may be less for some people.

What's the court date, by the way? I'm a bit sick of bycotting Amazon and Newegg.

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Zaos said:What's the court date, by the way? I'm a bit sick of bycotting Amazon and Newegg.

The news articles I've seen so far only talk about a complaint filed in State Supreme Court. I'm not sure on the court date, but whatever the outcome, the decision will probably be appealed to a higher court. (NY State is weird in that Supreme Court is the lowest state court)

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This whole sales tax thing is a major pain in the neck.

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