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Weekend rabble-rousing: Web sales tax bill may end free ride for eBay, others

Updated Dec 19th, 2018 6:18PM EST

The Rockefeller Institute, a research group tied to SUNY, said that sales taxes took a 6.1 percent dive in Q4 of 2008 and Q1 of this year was even worse. Given the current state of the economy of course, this is hardly a surprise. Beyond the obvious reasoning behind the decline — people are losing jobs, making less money and spending less money — the drop may be bad news on another front as it could finally spell the end for the free rides afforded by online shopping. The idea of requiring online retailers to collect sales tax on out-of-state sales has been tossed around over and over again but according to the New York Post, this time around it might just stick. A bill is expected to go before congress as soon as this week that would require online retailers such as Amazon and Overstock, and even the online auction house eBay to collect sales tax on behalf of the state to which items are delivered. This spells certain aggravation for consumers who enjoy saving cash by ordering online and even more so for Internet retailers who will have to implement the new policy.

In New York State where an online sales tax bill was passed last Summer, Web retailers are already in the midst of fighting the new policy. New York’s law now requires any online retailer that advertises on New York-based web sites to collect sales tax when shipping to New York. Amazon and Overstock have both pulled all advertising from websites based in New York in protest.


Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.