We have been receiving questions from our out-of-state customers about why we collect sales tax. While it is true that we are an online retailer and do not have to, the tide is turning, and it could turn against us.
On December 2, the United States Supreme Court upheld a ruling from the New York Court of Appeals requiring Internet retailers to collect sales taxes even if they don’t have a physical presence in the state. (Not surprisingly, the suit was brought by Amazon.com and Overstock.com, who, of course, do not want to force customers to pay sales tax.)
“The bottom line,” Chief Judge Jonathan Lippman wrote for the majority, “is that if a vendor is paying New York residents to actively solicit business in this state, there is no reason why that vendor should not shoulder the appropriate tax burden.”