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N.Y. plans to tax books bought from Amazon and other e-tailers
April 11, 2008 | 6:35 am
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By David Rothman
“As part of its new budget, the New York State legislature…approved the Internet Sales Tax provision, a move that will force out-of-state online e-tailers to collect sales tax on purchases made by New York resident.” – PW.
The TeleRead take: Careful, New York. Independent bookstores like this one certainly like the tax, but guess which state probably has the largest book-publishing industry? Also, consider that e-books, not just p-books, will be affected. The N.Y. tax just might be more ammunition for governments in far-off places eager to collect revenue. Someday might e-tailers have a confusing maze of taxes to deal with at the global level? Or will software be up to the task?
In defense of small p-bookstores: Whether through tax breaks or in other ways, I’d love to see more attention paid to their preservation. I love quirky fiction. And the independents are often—not alwasys—far, far more open-minded than are the chains. I simply question whether a tax on e-tailers, including the small guys among them, is the way to do it.
Additional thought—added at 9 a.m.: As I’ve just written, in this era of literacy and educational challenges, should any books be taxed—regardless of who is selling it? This approach would help local and e-tail stores alike.
Image credit: CC-licensed photo of the Bedford Avenue Bookstore from Stan.
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Comments:
I disagree with you, David. Technically, if your or my state has a sales tax, we owe it on all goods, but only in-state sellers are required to collect it at the time of sale. So a state that does not collect it is giving a built-in advantage to out-of-state sellers and the better-off consumer who buys online instead of from bricks-and-mortar places.
It’s closing a loophole, that’s all.
Hi, Sherman. I can see both sides. Oh, how states need the money! But there are jurisdictional questions. Perhaps better to collect taxes at the federal level if they must be collected? Also, given our country’s literacy issues, should any books be taxed. Thanks. David
Sherman says:
“Technically, if your or my state has a sales tax, we owe it on all goods,…”
I don’t think that is actually correct.
Certainly most states have been trying for years to achieve some federally mandated mechanism for grabbing sales tax revenue on out of state purchases but fortunately that has not happened yet. Many states (but not all) have passed laws that require that come tax time one declare the amount of their out of state un-taxed purchases during the tax year and then pay the tax on that amount but realistically that is a voluntary declaration.
Also, there is the whole issue of whether an “out-of-state” seller has nexis in the state where the purchaser resides so sales tax is in fact already paid on many internet sales.
Personally I don’t give much credence to the whole argument that because out of state sellers don’t always collect sales taxes that they have an advantage over local retailers – shipping costs usually are greater than the amount of tax that may have been collected.
David says:
“Also, given our country’s literacy issues, should any books be taxed”
I seriously doubt that a sales tax on reading materials impacts our literacy rates.
As much as we all may enjoy a good local independent book store I don’t really think throwing tax breaks their way is the answer. There are already too many entities that succeed in getting tax waivers.
New York wants folks from California to pay taxes in NY. That is really strange, as California wants to tax the same items, as if sold here.
BOYCOTT NEW YORK ON THE INTERNET!!!!!