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Cost of convenience

Local businesses say online sales tax loophole puts them at competitive disadvantage

September 08, 2011 03:36 PM | 0 0 comments | 12 12 recommendations | email to a friend | print
While transactions with large companies that have distribution centers in New York State are subject to sales tax, other online sales are not. A proposed federal law would require that all online transactions be taxed. This would “even the playing field” according to its supporters, which includes groups representing small businesses.

“A sale is a sale, no matter where it takes place," says David B. Henry, chairman of the International Council of Shopping Centers. "By not having to collect sales tax, online retailers have a distinct competitive advantage over their local retail counterparts." Some local businesspeople agreed. "It's only fair, isn't it?" says Cheryl Rice, manager of the Inquiring Mind Bookstore & Cafe in Saugerties.

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