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Re: NY Sales Tax Collection

IronMan77 — Sat, 23 Aug 2008 02:17:33 GMT

Sidicas:
NewEgg:
...This decision was driven by your direct and candid feedback...
This thread is finally over.

Good thing we had it though.

Re: NY Sales Tax Collection

fatboyHD — Sat, 23 Aug 2008 02:00:24 GMT

YEAHHHHHH ,,,, no more taxes, and no more

Re: NY Sales Tax Collection

Sidicas — Sat, 23 Aug 2008 01:41:30 GMT

Here is the full e-mail for people who might not be subscribed to receive them.

NewEgg:

As a result of recent changes in New York State tax law requiring certain out-of-state retailers to collect and remit sales taxes to the State of New York, we began collecting applicable sales tax for all orders shipped to New York addresses starting June 1, 2008.

After careful review and consideration, we are pleased to inform you that we have stopped collecting New York sales tax, effective August 21, 2008. This decision was driven by your direct and candid feedback and our continued commitment to you as our valued customers.

We appreciate your patience as we worked through this process, and would like to reiterate our commitment in offering our customers the broadest product selection, competitive pricing, fastest shipping, and award-winning customer service.

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

Disclaimer: While Newegg no longer charges sales tax to its New York customers effective August 21, 2008, you may still have an obligation to pay New York State use tax on your purchases. Newegg cannot offer you any tax advice, so please refer to applicable law if you have any questions about use tax. Nothing in this email shall be deemed to approve the validity of any New York State law, including but not limited to section 1101(b)(8)(vi) of the New York State Tax Law, which purports to require Newegg to collect and remit New York State sales tax on its sales to residents of that state.

This thread is finally over.

Re: NY Sales Tax Collection

IronMan77 — Fri, 22 Aug 2008 07:57:52 GMT

I just received the email:

NewEgg is no longer collecting sales tax for NY state customers!

NewEgg:
After careful review and consideration, we are pleased to inform you that we have stopped collecting New York sales tax, effective August 21, 2008. This decision was driven by your direct and candid feedback and our continued commitment to you as our valued customers.

Congratulations NewEgg I knew you would come around.

NewEgg just got my next purchase.

Re: NY Sales Tax Collection

unmarc — Tue, 19 Aug 2008 05:48:54 GMT

It seems Clear from above they're NOT going to drop the NY Affiliates program. I can't believe NY Affiliates are more vaulable than a Boat load of NY Customers. A large Rich state with Lots of people looking for No Sales Tax shopping sites. It'd be cheaper to have NY affiliates just become across-the-river 'NJ or tiny Connecticut affiliates'!

And that name and email Seem to check out As indeed Valid. You'll note there's also a phone number for him at the bottom of his post.

Re: NY Sales Tax Collection

IronMan77 — Mon, 18 Aug 2008 05:11:29 GMT

Well, we all already know that NewEgg went with their Affiliates on this one.

I'm still holding out all hope that either:

a) NewEgg will change their mind and drop it's affiliate program in New York or

b) The change in New York state law will be reversed in court

as soon as possible.

By the way- beware of any users on other sites claiming to be representing NewEgg.

Re: NY Sales Tax Collection

unmarc — Mon, 18 Aug 2008 04:48:05 GMT

I think you should all see this RECENT (8/13-14) string in Regards NewEgg's Intentions re it's NY Affiliates, VS it's NY Customers

http://forum.abestweb.com/showthread.php?t=108986

It contains a post by 'Newegg_Tommy' 'Affiliate Manager' with an email HERE at Newegg: tommy.t.chang@newegg.com

Re: NY Sales Tax Collection

Qchan — Sun, 27 Jul 2008 00:54:19 GMT

I have to agree with most people here. Having to pay 8.25% tax coupled with shipping defeats the purpose of shopping here at Newegg. I've been shopping here exclusively for years, however, if their going to allow this to happen, then I will have to take my business elsewhere. I honestly don't have a choice.

Re: NY Sales Tax Collection

RBBrittain — Fri, 25 Jul 2008 00:21:10 GMT

Well, perhaps it oughta be locked again. I can't be too worried that New York's no longer on Newegg's "best of both worlds" list--i.e., one-day UPS Ground shipping AND no sales tax. At least Arkansas is still on the list. And hopefully Amazon's lawsuit will keep the other states at bay for now.

But then, if New York can get by with counting website affiliates for nexus purposes, what's to keep them from counting UPS, FedEx, DHL, or even the good ol' Postal Service as affiliates? That's really bad since they all have some physical presence in all 50 states. That could easily be the straw that breaks the camel's back.

Re: NY Sales Tax Collection

CheapAsianGamerGuy — Thu, 24 Jul 2008 15:34:34 GMT

It was unlocked at user request.

Re: NY Sales Tax Collection

fatboyHD — Thu, 24 Jul 2008 11:39:08 GMT

i thought this thread was locked,,,,,,,,,

Re: NY Sales Tax Collection

jeeper1958 — Wed, 23 Jul 2008 22:36:54 GMT

Woops! Hey I'm willing to admit I was wrong on that. Didn't think to figure the shipping cost into the tax calculation. For that I am sorry Newegg, for all else said, still just darned p****d off over the whole deal. I'm an old time Newegg shopper from back in the day when Newegg was amazing. I mean placing an order and checking back on it less than an hour later and it's boxed, shipped, and with a tracking number. Those were the days of greatness. The service is still good but not as good as it use to be and why pay more when there are other sites with good service and you don't have to pay tax and shipping is also cheaper than at newegg now. All good things I guess do come to an end.

Re: NY Sales Tax Collection

Sidicas — Wed, 23 Jul 2008 00:28:46 GMT

CheapAsianGamerGuy:
Newegg is charging the 10% (EDIT: Or whatever percentage it is appropriate to Zip code, with shipping) tax the NY State Attorney general's office is mandating they charge and remit to the State of New York.

I'm not disagreeing with you, it appears to be 10% because the above poster didn't include the full situation because they didn't including shipping.

jeeper1958:

8.625 % and just for grins I just put an item in my shopping cart for $99.99 and the tax charged was $10.00.

(.08625)*(99.99) = $8.62 Tax

$10 - $8.62 = $1.38 Supposedly "Rip-Off" Tax.

(x)(.08625) = $1.38

x = $16
Which means, your item's shipping and handling was $16 which you failed to include in the total before you calculated what your tax should have been. It's either that, or you have the wrong sales tax for your area.

Re: NY Sales Tax Collection

CheapAsianGamerGuy — Tue, 22 Jul 2008 23:59:03 GMT

Newegg is charging the 10% (EDIT: Or whatever percentage it is appropriate to Zip code, with shipping) tax the NY State Attorney general's office is mandating they charge and remit to the State of New York.

Since Newegg remits this payment to NY State and does not keep a DIME, how are they ripping users off?

Re: NY Sales Tax Collection

Sidicas — Tue, 22 Jul 2008 23:58:26 GMT

I do believe either you are mistaken, or you have the wrong tax rate for your area as the shopping cart works fine for me.

My location: Herkimer County

My Sales Tax Rate: 8.25% 2008 Source

Item: $289.99

Shipping: $0.00

Tax: $23.92

(.0825)*($289.99) = $23.924

Which means, NewEgg is charging me 1/4th of a penny less than the actual tax!

Maybe we could get a few more New Yorkers to post back their results as well.

Also, don't forget the second part of the law which states

NYS Law:
As of June 1, 2008, when products are purchased online and shipped within New York State, the retailer must charge the tax amount appropriate to the locality where the goods are shipped, and in addition, must also charge the appropriate tax on the cost of shipping and handling.

Source: Sales Taxes In The United States

By the new law, Tax is calculated AFTER shipping and handling. Which could possibly explain your "Rip-Off" $1.30 extra tax on your order.

You can't spread fear, uncertainty and doubt (FUD) on these forums since there are many people who will go out of their way to investigate.