6 comments on “Amazon New York Internet Tax Law Bill S08638 and The Golden Snowball Oracle

  1. Thanks for all the information. We are going to stick to selling Apples & Wreaths which we buy locally and avoid the whole issue!

  2. Hi zr800, Pat asked me to stop in. This law has no real effect on your use of tax exempt status to purchase items. Right now, the only way it would be of consequence is if you were to start soliciting business on behalf of an out of state merchant in order to raise money or earn commission for your Troop located in NYS.

    To give an example, let us say your troop makes a deal with “Store A” who only has stores in California. “Store A” will pay your troop 5% of all sales you can generate. To encourage sales, “Store A” gives you a great coupon or discount to use, benefiting your troop, their families and friends. Your Troop does a great job and sells $11,000 worth of merchandise. Under this law, “Store A” now has a presence here in NY and must now collect NY sales tax on all regular sales to NY residents. It doesn’t affect your tax exempt certificate and what you buy but it does matter to the merchant who, if they are considered to have a presence in NY, must collect tax on all regular sales to NY residents.

    As a result of this law, many merchants decided to not let any New Yorkers sell for them. Unfortunately this includes letting nonprofit groups sell their items as fundraisers. Many museums and other non profit groups (including Scouts and PTA) are suffering.

    NY has clarified the law and how merchants can work within the law but some merchants are unwilling or unable to take the steps necessary, putting many NY affiliates and non profit groups who rely on affiliate income in financial trouble.

    It is a complicated subject and I hope I haven’t made it more confusing. I am more than happy to answer any questions. (Please note I am not a lawyer or an accountant and am unable to give advice. I can only give opinions)

    BTW, my son is a Webelo 1. :)

  3. Anon, I hope you do contact your rep and I agree that the high taxes are part of the reason people are leaving NYS!

    ZR, it’s good that you all buy local 😉 As for your tax exempt status I’m not quite sure how that would work. I believe that if you were to buy lets say candy bars online to sell and the merchant has over $10,000 in sales they would still be required to charge taxes under the law that went into effect/affect June 1st. I’m not quite sure though and I will try to have a woman I know has been one of the leaders in getting this overturned stop by here and answer that for you.

    That said, you can bet that all of the other states are watching the outcome of this in the courts and if it is deemed legal by most likely the Supreme Court most of the other states will follow and the entire internet will be taxed. Something that isn’t good for the consumers.

    There is a bill in the works in the US Senate to try and block part of this law which you can read about at
    http://nyaffiliatevoice.com/2008/10/federal-action-to-repeal-the-tax/ and there is probably more info about the Boy Scouts and charitable groups.

    Anon2, unfortunately gym, lunch, math and study hall were my best periods in school. English and History were always my tough subjects but it’s never too late to learn 😉 Thanks for pointing that out and I will attempt to go through and fix the errors.

  4. WOW Pat- As the treasure of BSA Troop 273 I am glad I saw this. But incidentally, BSA T 273 does not buy anything for fundraising online. In fact, we don't even participate in the BSA's popcorn sales because we think it is rediculous to ask someone to pay $10 for a can of popcorn. We sell Apples in October and wreaths in November & December which we purchase from local farm and nursery. We also rent canoes and sell food at the town's summerfest.

    But from what you are saying, I would not be able to use our tax exempt form if we purchased fundraising materials over the internet?

  5. Maybe some day New York will wake up and realize that they are just pushing people to move out of the state with tax after tax. Good luck to you people fighting this and thanks.

    I’ll be contacting my state Representative.

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