DMA Blasts NY Governor’s Tax Proposal
The Direct Marketing Association has blasted New York Governor Eliot Spitzer’s proposals to start collecting state sales taxes from out-of-state marketers whose connection with the state is no more than a link on their Web sites.
“It is unfortunate that Governor Spitzer has again proposed to place a legally questionable tax collection responsibility on the nation’s online retailers, especially after having abruptly withdrawn a similar proposal just two months ago under intense public criticism,” said Steven K. Berry, executive vice president for government affairs, in a statement. “We believe strongly that the proposal goes against the US Supreme Court’s landmark Quill decision, and thus would not survive legal scrutiny.”
In that 1992 decision, the court ruled that direct marketers are not obligated to collect sales taxes from customers in states where they have no physical presence.
