JagsLive writes "Defying New York lawmakers, "egg-cellent" electronics etailer Newegg.com has suddenly ceased collecting sales tax from the Empire State's online shoppers:
Under Governor David Patterson's new $122bn budget, online retailers with New York-based affiliate marketers are considered to have a "physical presence" in the state, and that means they're officially required to collect and remit sales tax from New York-based buyers. When the new budget took effect on June 1, Newegg dutifully obeyed the so-called "Amazon Tax," but late last week, it changed its mind.
"After careful review and consideration, we are pleased to inform you that we have stopped collecting New York sales tax, effective August 21, 2008," reads an email the company tossed at customers late last week, including at least one loyal Reg reader. "This decision was driven by your direct and candid feedback and our continued commitment to you as our valued customers."
Neither Amazon nor Overstock has flat-out disobeyed New York lawmakers. Despite its opposition to the new law, Amazon is collecting NY state sales tax while its case plays out. Overstock never collected the Amazon Tax, but it severed its relationships with 3,400 New York-based affiliates just before the law took effect.
( http://www.channelregister.co.uk/2008/08/25/newegg_defies_ny_amazon_tax/ )" Link to Original Source
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