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The amazon law: Will you pay web sales tax?
Author(s) -
Sonnier Blaise M.
Publication year - 2009
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20545
Subject(s) - sales tax , business , use tax , recession , legislation , revenue , amazon rainforest , cash , obligation , state (computer science) , the internet , ad valorem tax , finance , economics , law , double taxation , political science , keynesian economics , ecology , algorithm , world wide web , computer science , biology
Increased sales taxes can certainly impact a company's cash flow. Unfortunately, in this recession, tax revenues have dropped for the states, so they are looking for ways to boost taxes. One idea is to tax sales made over the Internet by state residents. New York has led the way with the 2008 “Amazon Law,” taxing online purchases by state residents if the online retailer has “affiliates” in New York. And many other states have considered similar legislation. Will your company soon be paying more Web sales tax? What strategies might help avoid this obligation? © 2009 Wiley Periodicals, Inc.