After a somewhat confusing law was passed in NY, Newegg.com began collecting taxes, as of this past Thursday August 21st 2008 Newegg stopped collecting NY State Tax.
In an email on the 22nd, Newegg informed its customers of the change, it also made NY residents aware that they are responsible for paying taxes for their purchases on their NY State income tax return, under the terms of the “use tax”.
Dear Valued Newegg Customer,
As a result of recent changes in New York State tax law requiring certain out-of-state retailers to collect and remit sales taxes to the State of New York, we began collecting applicable sales tax for all orders shipped to New York addresses starting June 1, 2008.After careful review and consideration, we are pleased to inform you that we have stopped collecting New York sales tax, effective August 21, 2008. This decision was driven by your direct and candid feedback and our continued commitment to you as our valued customers.
We appreciate your patience as we worked through this process, and would like to reiterate our commitment in offering our customers the broadest product selection, competitive pricing, fastest shipping, and award-winning customer service.
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 MerchandisingDisclaimer: While Newegg no longer charges sales tax to its New York customers effective August 21, 2008, you may still have an obligation to pay New York State use tax on your purchases. Newegg cannot offer you any tax advice, so please refer to applicable law if you have any questions about use tax. Nothing in this email shall be deemed to approve the validity of any New York State law, including but not limited to section 1101(b)(8)(vi) of the New York State Tax Law, which purports to require Newegg to collect and remit New York State sales tax on its sales to residents of that state.
Comments: (3)
Chris on Sat, Aug 23rd, 2008 at 02:41 PM
I didn’t know they were collecting tax in NY. I knew about California and NJ. It’s nice that they stopped
Spore on Sat, Aug 23rd, 2008 at 08:39 PM
Unfortunately, I get the feeling we’ll hear more and more about Internet sales taxes…
bgsbokht on Mon, Nov 17th, 2008 at 05:45 AM
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Post Tags: tax tech deals newegg use tax new york state tax
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