NYSAC Proposal to Update Internet Sales TaxPosted: Updated:
Retail businesses and property tax payers in counties throughout New York State are dealing with the impact of the outdated tax collection system for online marketplaces. On March 20, The New York State Association of Counties (NYSAC) called on State Legislators to start pushing for more support of the Internet Fairness and Conformity Act. Unlike other select states, NY does not currently require out-of-state companies to collect taxes from transactions made over the internet.
"If you have a brick and mortar store in New York than you must collect sales taxes whether you are selling in person or online. But the online seller from Nebraska does not have to collect those sales taxes," said NYSAC President MaryEllen Odell, the Putnam County Executive.
In order to adjust to the rise in online shopping, Governor Cuomo is proposing an update to the sales tax collection process for the 2018-2019 state budget. This update would require internet retailers to collect sales taxes on behalf of all of the businesses that use their platform and then remit the money back to NYS. This would help to create a fairer marketplace, increase sales tax revenue and ensure that all sales taxes owed are collected regardless of the method of purchase.