Newegg Bites Thumb at NY
Late last week, word got out that Newegg, an online computer hardware and software retailer, was going to stop charging residents of the state of New York sales tax on their purchases. This is a step back from its decision to comply with the New York State tax law requiring companies to collect sales tax on all shipments to customers located in New York.
The reversal begun to take effect for Newegg customers in New York State beginning on Thursday, August 21, 2008.
Amazon filed a lawsuit against the state of New York for its sales tax stipulations in late April, but retreated afterwards and indicated a willingness to comply. Overstock also sued the state in late May.
New York State will have to traverse some complications if it decides to go after Newegg, which is based in California.
Newegg made the decision based on its customers’ “direct and candid feedback and our continued commitment to you as our valued customers.”
Many will cheer the company’s decision to stick it to New York. For the time being, the threat of similar laws cropping up in other states seems to be somewhat neutered.
Sources:
http://news.cnet.com/8301-1023_3-10024736-93.html?tag=newsEditorsPicksArea.0
http://consumerist.com/5040444/hooray-newegg-stops-collecting-new-york-sales-tax
http://tech.yahoo.com/blogs/null/103774
