DMA Releases Statement Regarding New York Governor's Proposal to Tax Out-of-State Marketers

January 23, 2008 — New York Governor Eliot Spitzer’s recent budget and tax proposals call for legislation requiring out-of-state marketers to begin collecting state sales tax on deliveries made into New York, based merely on a link to the marketer’s 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 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a legally questionable tax collection responsibility on the nation’s online retailers, especially after having abruptly withdrawn a similar proposal just two months ago under intense public criticism. Clearly, the Governor’s proposal represents an overreach of authority that will harm consumers and merchants both in New York and nationwide. Just as the nation is in the midst of a slowing economy, the last thing businesses or consumers need is uncertainty in the marketplace.

“We remain disappointed that Governor Spitzer has initiated this proposal attempting to require out-of-state sellers to collect sales tax on deliveries into New York State, and hope members of the New York Legislature will see the obvious flaws contained within this proposal. We believe strongly that the proposal goes against the US Supreme Court’s landmark Quill decision, and thus would not survive legal scrutiny.”

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