Governor Spitzer’s New York Department of Taxation and Finance has issued a new regulation that requires out-of-state marketers to begin collecting state sales tax on deliveries made into New York based merely on a link to their website. In response, Direct Marketing Association (DMA) EVP/Government Affairs & Corporate Responsibility Steven Berry issued the following statement:
"It is unfortunate and particularly ill-timed to impose a legally questionable tax collection responsibility just as companies are headed into the all-important holiday season. This is an overreach of authority that will harm consumers and merchants both in New York and nationwide. Businesses depend on a robust fourth quarter to meet payrolls and operating expenses. The last thing businesses or consumers need is uncertainty in the marketplace…This directive goes against the US Supreme Court’s landmark Quill decision, and thus would not survive legal scrutiny."
RBR/TVBR observation: We understand times are tough for NY State-the economy there isn’t faring any better than the rest of the nation right now. However, that’s not a reason to make things worse for already-struggling marketers. An added tax will likely make a difference in many consumers’ minds as to purchase or not. NY is one of the most populated states in the nation, and this would be a big hit. Spitzer continues his role as a shakedown artist-this time online, rather than radio.