Newegg Will Begin Collecting Connecticut State Sales Tax in July

DooKey

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Back in February we reported to you that Connecticut made a deal with Newegg to get customer purchase information so they could send state tax bills to Connecticut residents that purchased from Newegg in the past several years. Newegg has now agreed to collect sales tax on purchases from Connecticut residents effective in July (Warning auto play video) and remit them to the state. Another one bites the dust. I suspect Newegg is going to lose a few sales over this one. Thanks cageymaru.

“This is exactly what we asked online retailers to do in the first place and I am glad Newegg has now agreed," Sullivan said. "While DRS did offer Connecticut taxpayers a settlement opportunity to avoid two years of interest and penalty, we much prefer the simpler and fairer solution of retailers collecting the tax.
 

nutzo

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"past several years"

Wonder what the statue of limitations for tax collecting is in Connecticut?

Of course they won't just be asking for the taxes, I'm sure they will tack on interest and penalties.
Remember that video card you save $25 in taxes on several years ago? It's now going to cost to a few hundred to settle your tax debt.
 

dvsman

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I'd be surprised if any customers from Connecticut who were recently snitched on will go back to buying from Newegg. Right or wrong (RE: use taxes), as a customer it makes you feel like crap to get snitched on by a company you used to support with your hard earned dollars
 

Kdawg

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still better than what we californians pay.

CT sales tax is only 6.35%

We pay close to 10% tax markup for this shit.
 
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Sending bills in the mail to collect the tax later seems so weird. Just collect the tax at the time of purchase.
 

zalazin

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Newegg has sucked for the last few years used to care, now just another blood sucking online retailer.........
 

Fixall

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I've had basically zero reason to shop at Newegg since they started charging sales tax in Washington state. It's not worth dealing with their horrendous policies and customer support when you're paying the same prices as on Amazon, etc.
 

viper_0307

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Newegg started collecting from PA too. If I find a better deal on Amazon or at Micro Center, that's where I am going.

I have given up on Newegg, they have been around too long, should be Rottenegg or Oldegg.
 

TurboGLH

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I'd be surprised if any customers from Connecticut who were recently snitched on will go back to buying from Newegg. Right or wrong (RE: use taxes), as a customer it makes you feel like crap to get snitched on by a company you used to support with your hard earned dollars

I'm one of those customers, and I won't go back to using them. Frankly, I already pay for prime (and have to pay sales tax), so I'll sicks to Amazon or B&H, which is basically two day shipping for me anyways .
 

Azphira

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How nice of them to finally agree anyway after fucking over their customers.
 

Baker_God

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They are no longer collecting back taxes from CT residents, they've come to an agreement with the state.
 

nutzo

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I've had basically zero reason to shop at Newegg since they started charging sales tax in Washington state. It's not worth dealing with their horrendous policies and customer support when you're paying the same prices as on Amazon, etc.

Living in California, they always charged sales tax.
Used to buy from them many years ago, but it's probably been at least 8 years since I bought anything from them.
 

likeman

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i still found it odd that sales tax was not done at point of sale (especially in this day and age) how it works for rest of the world
 

rudy

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i still found it odd that sales tax was not done at point of sale (especially in this day and age) how it works for rest of the world

Sales tax is done point of sales if you are in the state. But there are laws against taxing interstate trade in the USA due to our history. This is why internet retailers have never had to charge sales tax to out of state customers because there are laws against forcing them to do so. So what states do to get around it is they tell the residents that they must report their purchases and pay a tax on them. All of this is really in very grey areas of the law to me and many others. But now days it seems no one really cares in the governments about upholding these laws or much of any laws. If you want to look at it in the way that's its probably thought about it probably goes something like this. CT makes a law that residents must report and pay sales tax on all internet purchases from out of state but it is illegal to compel online retailers to collect it. Then they get a warrant or use some law to compel a large online retailer like newegg to hand over all customer data, they then make a veiled threat to go hard after all those users. Newegg realizes this will be horrible for them so they agree to collect sales tax as a service to the CT customers so they don't have to go through the trouble of reporting it at the end of the year. In exchange for this CT says they will just let the past pass! It's not really the end of the world Newegg will lose some sales, but CT consumers will get more taxes and so will the government.

That said its still all very very questionable that any of this is really legal or what the crafters of interstate commerce laws intended. The bigger question is why don't states shift the taxes over to something more local like property taxes and stop trying so hard to collect a sales tax and ruin any respect for the laws of the country. From a taxation stand point sales tax is really only highly beneficial to a state when you are pillaging someone else not your own residents. IE it is common for places that have high tourism like CA and NY to enact large sales taxes, or hotel taxes because its a way to siphon money out of tourist and others who do not reside in the state. But for a lot of states its just a highly variable tax now. And it will always be a game. Sure you can tax newegg and amazon today but then all that means is some new couple of websites will start to take market share and your sales tax you worked so hard to get will just dwindle down year after year again. Its a zero sum game in a day when people from China can ship something to you for cheaper than your neighbor can, and online shops can spring up anytime, and corporate headquarters can move in a heartbeat. Anything over 5% in savings is a significant enough amount to dictate a business model.
 

Darkswordz

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People mad about paying sales tax they're supposed to be paying in the first place?

whatever.gif
 
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