TreelineStudio Newsletter

The online Newsletter for artists and art enthusiasts alike written this month

                                  ***by David Brougham. April, 2008

Well...... is this the start of the downfall of "easy" money from Internet Sales?

Sales Tax for Online Retail Hits New York State

According to Marketing Vox, the voice of online marketing, the New York State legislature has passed a law requiring online retailers to collect sales tax on items shipped to New York inhabitants, regardless of the retailer's base of operations.  (wonder if that will hit us up hear in the frozen north)

The tax was proposed by former governor Eliot Spitzer in February.

The so-called "Amazon Tax" is expected to collect $50 million in revenue for New York this fiscal year. Tempted by the dollar figures, other states may pass similar measures.

Copycat bills will ultimately make online retail less pleasant for both consumers — which will see rate increases — and retailers, which must keep track of every state's policy for inbound merchandise.  

(Inbound? --- From Where?)

New York argued that since some Amazon affiliates — people who link to Amazon products in exchange for a commission — live in New York, Amazon technically has an operational presence in the state.

Last week Forrester predicted online sales would hit $204 billion this year.   Legislation like this, whereby states raise funding at the expense of online retail, shall only add to the current economic burden on consumers.

The law has not yet been passed, but Governor David Paterson is expected to approve it.

--- Editors note:" last years online sales where pegged at 136 billion, of which eBay grossed 59 billion of this total.

Interesting to note that up here in Canada similar views have been muddied about by our legislators.  To wit...Canada Post tried to instigate a tax on internet messaging.   Absolutely amazing what they will try.  

I have no doubt that our MP's in Ottawa and Provincial MLA's will be watching the New York State law closely to see how this pans out.............

Starting next week I will be doing a series of Internet articles on how you as an artist can benefit from having an online presence.  I think you will find it most interesting even if you already have an website or just thinking of getting one.

Watch for it....................

Have a great day........

David Brougham

Did you like this newsletter?  Sign up and never miss an issue.

Try       

Reliable Hosting, E-commerce Solutions,
Search Engine Optimization and much more!