DMA Releases Statement Regarding New York State's New Policy to Tax Out-of-State Marketers
November 14, 2007 ó Governor Spitzerís New York Department of Taxation and Finance has issued a new regulation that requires out-of-state marketers to begin collecting state sales tax on deliveries made into New York based merely on a link to their website.
In response, Direct Marketing Association (DMA) Executive Vice President for Government Affairs & Corporate Responsibility Steven K. Berry issued the following statement:
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It is unfortunate and particularly ill-timed to impose a legally questionable tax collection responsibility just as companies are headed into the all-important holiday season. This is an overreach of authority that will harm consumers and merchants both in New York and nationwide. Businesses depend on a robust fourth quarter to meet payrolls and operating expenses. The last thing businesses or consumers need is uncertainty in the marketplace.
We are very disappointed that Governor Spitzer and the New York Department of Taxation and Finance have just put forward a new directive attempting to require out-of-state sellers to collect sales tax on deliveries into New York State. This directive goes against the US Supreme Courtís landmark Quill decision, and thus would not survive legal scrutiny.
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