Spitzer’s Christmas Tax Surprise
November 14, 2007 
Feel free to thank Governor Spitzer when your online Christmas shopping costs more this holiday season:
New Yorkers going Christmas shopping online at Amazon.com will find an 8.375% surprise at the virtual cash register, courtesy of Governor Spitzer, who is moving aggressively to collect Internet sales taxes that have gone widely unenforced.
Under a new policy, major electronic retailers, such as Amazon.com, will be required to collect sales tax on all purchases from New York.
The policy, based on a novel legal theory, could hasten the end of the Internet’s era as a duty-free marketplace if other states follow New York’s lead.
I know who I’m crossing off my Christmas list this year, Gov. Spitzer. This additional tax move is ridiculous and will hurt online sales.
You’d think that in a state where taxes on clothing were reduced to spur additional retail sales, that the governor wouldn’t create additional taxes on online sales, but that would be too logical, wouldn’t it?
When sales tax on clothing was higher in New York, New Yorkers went to New Jersey to save money, hurting local businesses. I don’t forsee people shipping their online purchases for pickup in New Jersey, but if they live nearby they might drive through a tunnel or over a bridge to save the additional taxes.
UPDATE: Spitzer Abandons Amazon Tax
