Newegg reverses practice of charging New York sales tax

Online electronics retailer Newegg has stopped charging sales tax to its New York customers, according to a posting on the Consumerist.com.

The move by Newegg reverses action the online retailer took in June, in which it began to charge applicable sales tax for all shipments to New York, following passage of a new state law that required certain companies to charge sales tax on shipments to New York state.

Effective August 21, however, Newegg discontinued the practice and is leaving it up to New York residents to pay that sales tax themselves. That policy basically returns the responsibility of paying sales tax for online purchases back to the New York consumer, which was the case prior to the New York legislature passing its law earlier this year.

Newegg is not the only retailer taking a stand against the change in law. Earlier this year, Amazon.com filed a lawsuit against the state, claiming its law was "invalid, illegal, and unconstitutional." And online retailer Overstock has taken similar legal action. Amazon, however, has since said it will abide by New York law and collect the taxes.

Calls to Newegg were not immediately returned.

[mpitogo]

good for them

[08Rabbit]

I love newegg.<br />Now I love them even more.

[jag0]

Yet another reason why Newegg.com is awesome. Their prices are awesome and their customer service is top notch.

[thelemurking]

Damn them for their Memphis distribution center, I still have to pay TN sales tax which is nearly a dime to the dollar. $500 order hits me with $50 in tax :(

[Get_Bent]

Don't blame Newegg, blame your state legislature for jacking up their sales tax so high.

[Brooklynite2k]

Well that does suck but what are your property taxes and income taxes in TN? Probably nothing compared to what we have to pay here in NYS. NYS would just prefer to have their hands in yet another persons honey jar. Oh not to mention NYS is over 8% in sales tax to so we are pretty close to a dime a dollar as well. BTW im not blasting you im really just bashing on NYS.

[cnet2k4]

Way to go NewEgg. I pay tax here in NJ, and that's OK - someone's got to pay for the roads. What's NOT OK is New York State trying to get out-of-state companies to do their work for them. As an online entrepreneur this was looking to be a nightmare - imagine having to file 50+ tax returns (don't forget cities that have their own sales tax!) for working out of my home! It was unconstitutional for NY and my friends at NewEgg have stepped up! When you know, you go NewEgg!

[MadLyb]

Ehhh. <br /><br />Used to be a big NewEgg fan, but have always been a little peeved with their practice of charging before product ships, but recently had a situation where another dirty secret was exposed that if you order something that is showing in stock, they will charge your card and then check actual availability and if the product is out of stock, they will cancel the order and then take 3-5 days to refund the money. And then you get to go place another order. No other online retailer performs this practice.<br /><br />So, I took my money elsewhere...taxes included. 8^)

[tux_warrior]

Interesting<br />I was sort of on the fence about a new digital camera I was looking to buy from Newegg.....after reading this I'm buying it without a doubt from them.<br /><br />Thank god for Newegg<br />oh and thank god I'm not from New York ;)