Newegg DROPS NY Sales Tax As Of August 21st!!!!!!!

[LUCI5R]

YESS!!!!

Newegg memo explains why Newegg is no longer charging New York State sales tax, as of August 21.
---
New Egg changes TOCs b/c of NY Sales TAx

A few months ago, New York State made changes to its tax law which potentially require out-of-state internet retailers to collect and remit sales taxes to New York State.

Since then, New York State has issused a memorandum indicating that an internet retailer would be presumed not to need to collect New York sales tax as long as: (1) its contracts with its New York-based affiliates prohibit the affiliates from engaging in solicitation activities which refer New York customers to the retailer, and (2) the New York-based affiliates sign an annual statement confirming that they have not solicited New York customers for the retailer.

We firmly believe that our relationships with our New York-based affiliates should not require Newegg to collect New York State sales tax. However we want to make sure you comply with the new rules. Therefore, we have posted special terms and conditions on the Commission Junction website. To comply with the memorandum, the terms and conditions require you (1) to not solicit business for Newegg from New York residents, and (2) to submit a yearly certification stating that you have not solicited business from such residents.

Please log into your Commission Junction account today to review and agree to the new program terms and attached terms and conditions. Because we want to ensure that our affiliate partners comply with New York State tax law, I would ask that you please complete this no later than August 20, 2008. Please note that if you do not accept the new program terms containing the new terms and conditions by August 20, 2008, the system will automatically expire you from the program. You would then have to re-apply and accept the new program terms in order to be re-admitted into the Newegg affiliate program. To prevent you from having to reapply, we ask that you make every effort to accept the new program terms on or before August 20, 2008.

We are committed to our New York customers, as well as our affiliate partners. We strive to provide our customers and affiliates with the best product deals, selection and service.

If you have any questions, please let us know.

NY Sales Tax disclaimer gone:
http://www.newegg.com/HelpInfo/FAQSearch.aspx

Just did a whole shopping cart thingy - NY State shipping & billing address - Confirmed, No Sales Tax, as of today!!

Life if Good!! Gob Bless the 'Egg!!

[sonofander]

now if we could only get the same for California...

[krogen]

now if we could only get the same for California...

Newegg is based in California, so that's out of question.

[twilyth]

now if we could only get the same for California...

NJ, Cali and wherever else they have a warehouse are all boned. We're NEVER going to be off the hook. Personally I've been using the egg to find items I want and then actually buying them at places that have reasonable shipping and and no sales tax - like provantage. I'm only ordering from the egg if it's free shipping - like on the laser printer I just got - or if I need something immediately.

[LUCI5R]

NJ, Cali and wherever else they have a warehouse are all boned. We're NEVER going to be off the hook. Personally I've been using the egg to find items I want and then actually buying them at places that have reasonable shipping and and no sales tax - like provantage. I'm only ordering from the egg if it's free shipping - like on the laser printer I just got - or if I need something immediately.

For the brief period they were charging the Tax, I began to do the same. Looked at reviews, pictures & specs at newegg, and shopped elsewhere - mostly ZipZoomFly - for my entire latest upgrade and other purchases.

Being a Newegg customer for over 3 years, residing in New York state, the Tax was a major distraction & inconvenience - when you get used to a certain way - any mandatory expense added upon is always bitter.

I'm not sure if it had anything to do with the removal of Tax, but I'm imagining, if I moved on because of the Tax, I'm sure there's others like me who did as well - I wonder how big that number was - and if it had any impact in Newegg's efforts to remove the Tax.

[WRC]

even companies are afraid of Big Brother, they do not even want to risk having to deal with the NY state govt. at all

[Nanometer]

now if we could only get the same for California...

I know seriously, the tax on a 1000 cpu is murderous.

[twilyth]

Being a Newegg customer for over 3 years, residing in New York state, the Tax was a major distraction & inconvenience - when you get used to a certain way - any mandatory expense added upon is always bitter.

I'm not sure why I started doing this. I think it was the overall effect of high shipping and taxes. I don't really mind paying the tax since I'm legally obliged to do it anyway - not that I would any sleep over it if I didn't pay. It's just that some of the shipping fees are ridiculous - like $7 for an ethernet cable - come on!!! Being essentially a lazy slob, I never bothered checking out other vendors except when I couldn't find something on the egg. But I've been more motivated lately so I've just gotten in the habit of checking elsewhere and it has definitely saved me a lot of money. My last order was from directron and I think I saved about $20 on taxes and $30-40 on shipping. Not bad for a little extra work.

[RobPuba]

I'm sure glad they stopped........ why should they be the only ones and not all

[Bobsama]

W00t! About time! Anyways--at least I never paid the tax... I bought my EeePC days before it went into effect.

[DeadlyFire]

wwoooohoooooo!!

[Bubbaxm2]

Damn, I just placed an order yesterday!!

[xytrius]

I could never figure out how or why NY chose to impose the tax.

Federal law explicitly forbids States from imposition of taxes on goods of non-local origin (but within the Union) that are sourced from the Internet. From Wikipedia:

The 1998 Internet Tax Freedom Act was authored by Representative Chris Cox, R-CA and Senator Ron Wyden, D-OR and signed into law on October 21, 1998 by President Bill Clinton in an effort to promote and preserve the commercial potential of the Internet. This law bars federal, state, and local governments from taxing Internet access and from imposing discriminatory Internet-only taxes such as bit taxes, bandwidth taxes, and e-mail taxes. The law also bars multiple taxes on electronic commerce.

The bill has been extended three times by the United States Congress since its original enactment and was last renewed on October 30, 2007 for 7 years.

Source: http://en.wikipedia.org/wiki/Internet_taxes

The Congress has extended the law thrice because of fears of voter backlash, how could NY have thought it can get away with it?

To the best of my knowledge, States can overrule Federal law only if they can prove subjugation by the Feds; even then they have to take it to the ballot, am I wrong?

Anyway, glad that it happened.

[Ashraf]

Hooray for New Yorkers!

[hecktic]

Newegg is based in California, so that's out of question.

which is why I order to be delivered to either a friends of relative address outside of CA rofl

[MaxxxRacer]

I know seriously, the tax on a 1000 cpu is murderous.

The price on a $1000 cpu is murderous, the tax is just the government dancing on the grave of your wallet.

[mion]

I could never figure out how or why NY chose to impose the tax.

Federal law explicitly forbids States from imposition of taxes on goods of non-local origin (but within the Union) that are sourced from the Internet. From Wikipedia:



Source: http://en.wikipedia.org/wiki/Internet_taxes

The Congress has extended the law thrice because of fears of voter backlash, how could NY have thought it can get away with it?

To the best of my knowledge, States can overrule Federal law only if they can prove subjugation by the Feds; even then they have to take it to the ballot, am I wrong?

Anyway, glad that it happened.

Did you bother reading that, the Wiki source. Read it few more times until you will see this

The law, however, did not affect sales taxes applied to online purchases. These continue to be taxed at varying rates depending on the jurisdiction,

Though this is more interesting
http://seattlepi.nwsource.com/busine...ml?source=mypi

Last year Washington passed the law to require online retailers to collect sales tax. The new law changes the state's tax system from origin-based to destination-based. Taxes will be collected based on the location of the buyer, not the location of the seller.

Rather, the states that have joined the consortium are preparing for Congress or the Supreme Court to make e-commerce nationally taxable.

I noticed this lately that states/cities instead of attracting new businesses, they go after people living there. Raising taxes, putting speed cameras, red light cameras.

[twilyth]

Did you bother reading that, the Wiki source. Read it few more times until you will see this

That's true, but in most states (like NJ) you're supposed to declare out of state purchases and pay a use tax. The real issue in NY's case was whether they had the right to force an out of state vendor to collect the tax for them. The answer is that they don't unless the vendor has a connection with that state. Normally that would mean a physical presence like a drop ship location as in the case of NJ. NY decided to read that requirement expansively to include "affiliates" of NewEgg - which in my opinion was completely bogus. I guess NY figured they should cover their butt on that too since they seem to have taken a step back.

[xytrius]

Did you bother reading that, the Wiki source. Read it few more times until you will see this:

The law, however, did not affect sales taxes applied to online purchases. These continue to be taxed at varying rates depending on the jurisdiction

Yes, I did read the source, and I do not have to read it multiple times to see or understand it; however it does indeed look like you have to – jurisdiction is in your quote and that is the term you do not seem comprehend. NY exercised revenue collection in jurisdiction that it did not have.

[hecktic]

and if those ******* in washington ever decide to pass the proposed idea into legislation re: universal tax rates for every state, then you can kiss this good bye....

although the likely hood of that happening does not seem very promising, I just thought Id let you guys know if you did not already know it.... tell your local congressman to oppose the idea now if you dont want to see this into legislation in the future.... personally I think if it ever got into law, it would kill many many big sales on computer hardware and electronics in general mainly due to the insane taxable amount on the items cost in question.....

my extra 2 cents

[LUCI5R]

I'm not sure why I started doing this. I think it was the overall effect of high shipping and taxes. I don't really mind paying the tax since I'm legally obliged to do it anyway - not that I would any sleep over it if I didn't pay. It's just that some of the shipping fees are ridiculous - like $7 for an ethernet cable - come on!!! Being essentially a lazy slob, I never bothered checking out other vendors except when I couldn't find something on the egg. But I've been more motivated lately so I've just gotten in the habit of checking elsewhere and it has definitely saved me a lot of money. My last order was from directron and I think I saved about $20 on taxes and $30-40 on shipping. Not bad for a little extra work.

Believe it or not, as little as Directron is ever mentioned on this board, I've shopped there with great satisfaction on numerous occasions. Not necassarily cost of item - but shipping & all many times brought the grand total lower then most retailers, including Newegg.

The thing with Newegg's shipping is - from what I gather - the minuscule the item, the higher/ridiculous shipping costs, for eg:- AS5, Cables, Fans etc. ... and the larger the Item, the lower the Shipping costs. I've bought everything from XBOX360, Motherboards, Hard Drives to LCD Monitors from Newegg - all at Free Shipping. And I've paid more then the cost of Item in Shipping for some of the smallest items like Fans & Cables there. For me personally though - for some odd obnoxious reason - every time I want something at the 'egg, 99% of the time it's either at Free Shipping or goes into Free Shipping if I wait a day or two. I've hardly ever paid Shipping to Newegg - which is why this Tax was a big deal for me - I was totally an avid Newegg Customer. Shopping elsewhere sucked.

That said, there are alternates - Provantage, Directron, ZipZoomFly - I've purchased from all with excellent satisfaction and mostly when Total's were lower then Newegg.

[ripken204]

i just got an email about it, im soo happy

now i can get a 4870X2

[LUCI5R]

i just got an email about it, im soo happy

now i can get a 4870X2

I didn't get an email

[HousERaT]

I like Newegg a lot more than I did a month ago.

[ziddey]

too late. newegg charging tax made me move out of ny.