In the Supreme Court Case, Quill Corp. v. North Dakota, 504 U.S. 298, the Court Ruled that a State can't Impose Tax-Collection obligations unless a Seller has a Physical Presence within its Borders. The basic Rationale is that without a Physical Presence, there's not a strong enough Connection between the Seller and the State. But the relevant Supreme Court Decisions are Decades old. In a World where Online Selling is easy, fast, and ubiquitous, the Court is now asked to reconsider whether a Physical Presence is always necessary. The combination of Technological Innovation and changes in Consumer Behavior has allowed Sellers to become more Connected than ever with Customers across the Country.
The question before the Court is whether a State may force Out-of-State Vendors to Collect Taxes on Sales to its Residents.
I was part of the Quill Case, when I was in the Direct Marketing industry (Catalog Sales), from 1985 till 1998.
The Justices won't be Writing on a Clean Slate. As Justice Kennedy noted in a recent Concurrence, what it means to be "Present" in a State may have taken on a different meaning.
Now, New York State Legislators are attempting to impose a Sales Tax aimed at New Yorkers who shop Online and the Individuals and Businesses across the Country who sell to them. Under this Internet Sales Tax Proposal, everything New Yorkers buy Online from Out-of-State Businesses, Artisans, and average Individuals would now be subject to New York State Sales Tax.
New York Small Businesses that sell Online would also see their Costs of doing business Rise.
Ebay created this Petition:
CLICK HERE if you are a New Yorker, take a stand against this unfair and unpopular legislation, to contact your State Legislator and tell them to Reject the Internet Sales Tax Proposal.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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