Newegg Defies State of New York with New Tax Policy

Electronics merchant Newegg.com has decided to not charge taxes in accordance with a new New York state law requiring e-commerce sites to collect sales taxes. The law, which went into effect June 1, is highly controversial. Amazon.com is suing the state of New York, saying the law is illegal and unconstitutional.

Opponents of the sales tax point to a 1992 Supreme Court ruling that said a mail-order company only has to pay taxes in the states where it has operations. Newegg only charges sales taxes in California, where the merchant is headquartered as well as Tennessee and New Jersey, where it has operations.

What do you think of Newegg's defiance? Is New York's tax law illegal? Sound off in the comments.

via Internet News, hat tip to Al Scillitani

About the author

Nathania was a Search Engine Watch news correspondent from 2008 to 2010. Before that, she held positions as Senior Editor at Bold Interactive and Search Marketing Copywriter at Fortune Interactive.