Newegg.com - Important Notice About State of New York Tax Law

Debbie · Post by **Debbie** » Sat May 24, 2008 10:12 pm

Dear Valued Newegg Customer,

As a result of recent changes in the State of New York Tax Law requiring certain out-of-state retailers to collect and remit sales taxes to the State of New York, we regrettably inform you that Newegg.com must begin collecting applicable state and local sales tax for all orders shipped to New York addresses on or after June 1, 2008.

Qualified business customers can continue to use the Newegg.com Sales Tax Exempt Form.

We value our relationship with you and all of our New York customers. We apologize for any inconvenience caused by this change in New York law and assure you that we will continue to work hard to offer you the best prices, fastest shipping and award winning customer service you deserve.

We look forward to continuing to provide you with the premier online shopping experience for all of your IT and Consumer Electronics needs.

Sincerely,

Bernard Luthi
Newegg.com
Company Spokesperson and
Vice President of Merchandising

.

Sava700 · Post by **Sava700** » Sat May 24, 2008 10:15 pm

Yeah total BS if you ask me.... Lets hope other states don't follow this and someone fights NewYorks law on this.

Prey521 · Post by **Prey521** » Sat May 24, 2008 10:17 pm

I'm an Amazonaholic and I hope that they at least fight this to the end.

Unholy · Post by **Unholy** » Sat May 24, 2008 10:30 pm

I've been paying sales tax at newegg since the beginning.

Jim · Post by **Jim** » Sun May 25, 2008 12:03 am

JBrazen wrote:I'm an Amazonaholic and I hope that they at least fight this to the end.

.

Shinobi · Post by **Shinobi** » Sun May 25, 2008 2:05 am

Sava700 wrote:Yeah total BS if you ask me.... Lets hope other states don't follow this and someone fights NewYorks law on this.

Yep.. it is BS.. it should never had happen.

downhill · Post by **downhill** » Sun May 25, 2008 11:08 am

While I don't like to see it either, I think it's only a matter of time before all states with a sales tax, start collecting.

Some already do if the site you purchase from, has any kind of business in that state.

Think of it this way. How much income have the various states lost do to internet sales? What are the long term ramifications to your local businesses when internet sales have an advantage of getting you a better price since there isn't a sales tax to collect?

Both are huge.

Before you jump down my throat, I enjoy buying over the net. One of the big reasons is no sales tax on big items I might buy. I'm just showing the other side of the coin that most of you seem to be missing and that is....it IS affecting how your state collects taxes. That revenue has to be made up somehow or services need to be cut.

Dan · Post by **Dan** » Sun May 25, 2008 11:26 am

Unholy wrote:I've been paying sales tax at newegg since the beginning.

me too

horsemen_ · Post by **horsemen_** » Sun May 25, 2008 1:27 pm

they should have a Exempt for military address also seeing how on base you don't pay any tax

Sava700 · Post by **Sava700** » Sun May 25, 2008 2:51 pm

downhill wrote:While I don't like to see it either, I think it's only a matter of time before all states with a sales tax, start collecting.

Ohh they will try..but I'm sure to fight it tooth and nail with my vote and say. But they will only fight harder since they are losing too much money on lost taxes from that gas tax they are missing out on since people are cutting back on buying gas cause they just can't afford it. Guess you have to screw the public some how.

YARDofSTUF · Post by **YARDofSTUF** » Sun May 25, 2008 2:56 pm

Sava700 wrote:Ohh they will try..but I'm sure to fight it tooth and nail with my vote and say. But they will only fight harder since they are losing too much money on lost taxes from that gas tax they are missing out on since people are cutting back on buying gas cause they just can't afford it. Guess you have to screw the public some how.

Of course, bring gas into this as well.

Aren't people suppose to do somethign with taxes at the end of the year with stuff bought online to pay sales tax that way?

Sava700 · Post by **Sava700** » Sun May 25, 2008 3:03 pm

YARDofSTUF wrote:Of course, bring gas into this as well.

Are you that blind that they will have to try to suck up that lost tax money some where?? Its clear to see they can't get it from gas as much as they used to cause of people cutting back so this is another way to get it. Virginia is trying to raise the vehicle registration another 10$ a year...

They are doing everything they can to milk lost tax flow.

YARDofSTUF · Post by **YARDofSTUF** » Sun May 25, 2008 3:09 pm

Sava700 wrote:Are you that blind that they will have to try to suck up that lost tax money some where?? Its clear to see they can't get it from gas as much as they used to cause of people cutting back so this is another way to get it. Virginia is trying to raise the vehicle registration another 10$ a year... They are doing everything they can to milk lost tax flow.

That, or they want the money they're losing to online purchases back.

Sava700 · Post by **Sava700** » Sun May 25, 2008 8:35 pm

YARDofSTUF wrote:That, or they want the money they're losing to online purchases back.

never had it to begin with so they didn't lose anything.

YARDofSTUF · Post by **YARDofSTUF** » Sun May 25, 2008 10:00 pm

Sava700 wrote:never had it to begin with so they didn't lose anything.

Yes, of course, people never purchased stuff locally, we all built our electronics by hand.

Sava700 · Post by **Sava700** » Sun May 25, 2008 10:49 pm

YARDofSTUF wrote: Yes, of course, people never purchased stuff locally, we all built our electronics by hand.

no..I mean they never had the taxes from those sales to begin with..so they didn't lose anything.

Not sure what you missed on that?

YARDofSTUF · Post by **YARDofSTUF** » Sun May 25, 2008 11:04 pm

Sava700 wrote:no..I mean they never had the taxes from those sales to begin with..so they didn't lose anything.

Not sure what you missed on that?

They're missing the tax money they lost when all these sites started popping up and people stopped shopping locally for the items.

Not sure what you missed on that.

JawZ · Post by **JawZ** » Mon May 26, 2008 1:37 am

YARDofSTUF wrote:They're missing the tax money they lost when all these sites started popping up and people stopped shopping locally for the items.

Not sure what you missed on that.

You wrongfully assume that people were shopping locally to begin with.

Also, on the PC side, most local shops don't keep any sort of stock...they also order from the likes of Newegg and others.

Now I'm not fully against the taxes, I think the taxes could be used for better things, like universal healthcare. That will never happen lol.

YARDofSTUF · Post by **YARDofSTUF** » Mon May 26, 2008 3:05 am

UOD wrote:You wrongfully assume that people were shopping locally to begin with.

Yes how wrong of me to think that people bought stuff in their own state prior to the internet.

OSULLY · Post by **OSULLY** » Mon May 26, 2008 3:39 am

YARDofSTUF wrote: Yes, of course, people never purchased stuff locally, we all built our electronics by hand.

Making my own chips is real hard on the electric.

Far-N-Wide · Post by **Far-N-Wide** » Mon May 26, 2008 7:42 am

OSULLY wrote:Making my own chips is real hard on the electric.

Bahhh!, Just eat silicon and Poop a steamy brown chip.

JawZ · Post by **JawZ** » Mon May 26, 2008 11:09 am

YARDofSTUF wrote:Yes how wrong of me to think that people bought stuff in their own state prior to the internet.

Yes, it was wrong of you. Apology accepted.

And before the net it used to be catalogs and 1-800 numbers. The world and it's various economies didn't start with the net.

So let me ask you this...because my next question is going to bring all the clarity in the world to this subject.

If bit torrent sites were to be shutdown and it's technology outlawed, would pirates start buying all their wares?

the answer is NO. People that download crap never had any intentions of buying it in the first place. You can google the studies at your own leisure.

So the same holds true here as well. Just because you tax sales off of Newegg doesn't mean that people will all of a sudden jump ship and start buying from Mom & Pop brick and mortars. Not gonna happen. And if people are gonna be taxed, they will look for other ways to avoid it...like ebay or craigslist, etc.

Newegg is based out of where...CA? (I'm not sure) and it has warehouses in other states...one is in NJ for sure. Interstate commerce laws come into play here but for the most part...New York businesses should look to find a way to counter Newegg...compete with them. New York should also look for incentives to keep buyers in state.

In NJ we have urban enterprise zones with half the normal state taxes. So instead of paying 6%, you pay 3%.

YARDofSTUF · Post by **YARDofSTUF** » Mon May 26, 2008 11:13 am

UOD wrote:Yes, it was wrong of you. Apology accepted.

And before the net it used to be catalogs and 1-800 numbers. The world and it's various economies didn't start with the net.

Not the same volume I figure, unless you have some stats to suggest otherwise.

I don't argue your point on bit torrent.

JawZ · Post by **JawZ** » Mon May 26, 2008 11:26 am

YARDofSTUF wrote:Not the same volume I figure, unless you have some stats to suggest otherwise.

I don't argue your point on bit torrent.

It is hard to tell, the figures I've seen say that e-tailers took over from catalogs/mail order in 2005. But catalogs/mail order has been around for ages lol. Remember looking at the Sears Christmas catalog?

But what complicates this is that traditional catalogs/mail order businesses have moved to e-tailing in conjunction with their primary/traditional business model.

Here is one such article:

http://www.internetretailer.com/article.asp?id=15099

The web is just one big Sears catalog.

If I were in NY and had the capital, I'd launch a catalog/direct marketing business because people love to obsess over their stuff. Catalogs are great bathroom material and they always say buy me buy me buy me now!!!!!!

downhill · Post by **downhill** » Mon May 26, 2008 11:28 am

Sava700 wrote:Are you that blind that they will have to try to suck up that lost tax money some where?? Its clear to see they can't get it from gas as much as they used to cause of people cutting back so this is another way to get it. Virginia is trying to raise the vehicle registration another 10$ a year... They are doing everything they can to milk lost tax flow.

Depends on the State on if it's really milking or not.

How do you feel about major hiways being changed over to gravel roads? How about improments to say, areas prone to flooding? How about closing off any state parks? How about less regulation by your fish and game departments? Like closing hunting and fishing on public lands till they can get more funding?

It's a two way street. These things have to be somehow, paid for.

Sava700 · Post by **Sava700** » Mon May 26, 2008 3:28 pm

downhill wrote:Depends on the State on if it's really milking or not.

How do you feel about major hiways being changed over to gravel roads?
It's a two way street. These things have to be somehow, paid for.

yeah the high prices of oil is costing a boat load for that pavement since yes it takes oil to make.

They can get the funds from other places besides the internet..it will only kill Newegg's sales and others for that matter.

downhill · Post by **downhill** » Mon May 26, 2008 3:53 pm

Sava700 wrote:yeah the high prices of oil is costing a boat load for that pavement since yes it takes oil to make.

They can get the funds from other places besides the internet..it will only kill Newegg's sales and others for that matter.

I'll have to agree to disagree with you. Even with sales tax added, at least for me, places like Newegg will always better the prices at the mom and pop stores around here as well as the big chain retailers. Maybe not always but pretty much most of the time.

That Sharp you have. Tell me, as good a deal as you got on it, would you really shop locally to buy it even with the sales tax added? After all..you'd be paying that tax either way.

Sava700 · Post by **Sava700** » Mon May 26, 2008 9:07 pm

downhill wrote:

That Sharp you have. Tell me, as good a deal as you got on it, would you really shop locally to buy it even with the sales tax added? After all..you'd be paying that tax either way.

I believe going with OneCall over local places like BestBuy,Circuit city and Crutchfield for the same model I saved about 800$ on average even with the shipping costs cause I didn't have to pay sales tax and One call was already cheaper for the same TV plus same warranty. It was shipped from WestVA which put it at my house in only a few days which was great.. and since they have no physical presence here in VA there was no sales tax which is great and another reason why I look to them vs these other places anymore.. I'm always going to do that when I make a purchase anymore and Newegg is a perfect example!

downhill · Post by **downhill** » Tue May 27, 2008 10:56 am

Sava700 wrote:I believe going with OneCall over local places like BestBuy,Circuit city and Crutchfield for the same model I saved about 800$ on average even with the shipping costs cause I didn't have to pay sales tax and One call was already cheaper for the same TV plus same warranty. It was shipped from WestVA which put it at my house in only a few days which was great.. and since they have no physical presence here in VA there was no sales tax which is great and another reason why I look to them vs these other places anymore.. I'm always going to do that when I make a purchase anymore and Newegg is a perfect example!

Thanks for making my point.

Sava700 · Post by **Sava700** » Tue May 27, 2008 1:37 pm

downhill wrote:Thanks for making my point.

ok? But I didn't "Pay that sales tax either way" Just so you know that was my point. The part about me not paying sales tax on it was a very good buying point.

downhill · Post by **downhill** » Thu May 29, 2008 12:53 am

Sava700 wrote:ok? But I didn't "Pay that sales tax either way" Just so you know that was my point. The part about me not paying sales tax on it was a very good buying point.

Which you would have done anyway because there aren't brick and motar stores that can match that price. Even with a sales tax added to an internet sale.

Now..factor in the price of gas and a sales tax and that might be a different story.

Sava700 · Post by **Sava700** » Thu May 29, 2008 1:03 am

downhill wrote:Which you would have done anyway because there aren't brick and motar stores that can match that price. Even with a sales tax added to an internet sale.

Now..factor in the price of gas and a sales tax and that might be a different story.

But... I didn't pay sales tax, thats the point here.

Cost of gas and sales tax would have for sure been a bad move vs having it shipped in with no sales tax and no cost of gas..plus I wouldn't have had to leave the house.

downhill · Post by **downhill** » Thu May 29, 2008 1:43 am

I give up.....you're saying the same thing..It wouldn't have mattered BECAUSE EVEN WITH SALES TAX it still would have been cheaper.

Good grief dude. Argue much?

Sava700 · Post by **Sava700** » Thu May 29, 2008 10:00 am

downhill wrote:I give up.....you're saying the same thing..It wouldn't have mattered BECAUSE EVEN WITH SALES TAX it still would have been cheaper.

Good grief dude. Argue much?

But it does matter.. regardless if it is cheaper or not and I'm not the one arguing, you are. I've made my purchase and it was based not only on sales tax but also regular price,warranty,shipping costs and then the level of service I got. If the sales tax would have been included and I made the purchase at Crutchfield then I would have been paying more for it since regular price was a about 400$ more, then tack on the sales tax and it would have pushed it very close to 500$ and this is without adding shipping costs which I would have had to pay anywhere unless I drove to get it..but with gas prices then it still was a bad move.

But again, your the one arguing with me..I've made my point but you just keep on trying to get me to say something against myself for some odd reason.

downhill · Post by **downhill** » Thu May 29, 2008 11:23 am

Lmao!

Roody · Post by **Roody** » Thu May 29, 2008 11:35 am

Some threads just make your head spin.

David · Post by **David** » Thu May 29, 2008 12:35 pm

UOD wrote:Yes, it was wrong of you. Apology accepted.

And before the net it used to be catalogs and 1-800 numbers. The world and it's various economies didn't start with the net.

So let me ask you this...because my next question is going to bring all the clarity in the world to this subject.

If bit torrent sites were to be shutdown and it's technology outlawed, would pirates start buying all their wares?

the answer is NO. People that download crap never had any intentions of buying it in the first place. You can google the studies at your own leisure.

So the same holds true here as well. Just because you tax sales off of Newegg doesn't mean that people will all of a sudden jump ship and start buying from Mom & Pop brick and mortars. Not gonna happen. And if people are gonna be taxed, they will look for other ways to avoid it...like ebay or craigslist, etc.

Newegg is based out of where...CA? (I'm not sure) and it has warehouses in other states...one is in NJ for sure. Interstate commerce laws come into play here but for the most part...New York businesses should look to find a way to counter Newegg...compete with them. New York should also look for incentives to keep buyers in state.

In NJ we have urban enterprise zones with half the normal state taxes. So instead of paying 6%, you pay 3%.

Evan,

The sales tax in NJ is now 7%, publically accepted courtesy of a few Corzine prevarications.

Computer hobbyists in the Garden State depended on the gypsy computer shows that would run through the area every month or so, to make purchases Ken Gordon Productions was the largest, having retailers from more than 6 states setting up tables, huckstering the latest hardware and software. The internet KILLED these shows. The ability to dodge sales tax and not waiting for the show to hit town did them in.