Live in NYS? Buy a lot of DVDs online? prepare to get $crewed over.

Discussion in 'After Hours Lounge (Off Topic)' started by Paul_Scott, Feb 1, 2004.

  1. Paul_Scott

    Paul_Scott Lead Actor

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    N.Y. has new tax surprise on sales
    By GLENN BLAIN
    THE JOURNAL NEWS
    (Original publication: February 1, 2004)
    If you did a lot of shopping over the Internet or bought goods outside of New York state during the past year, be prepared to pay more in state taxes when you file your return.
    Thanks to the 2003-04 budget adopted by the state Legislature, New Yorkers must now declare all purchases made during the year that were not taxed by the state. The list includes online purchases, mail-order buys and goods bought outside of New York.
    "If you go to Florida and you buy a T-shirt and you bring it back to New York, as a New York state resident, you are supposed to pay New York state tax on it because you use it in New York, but you get a credit for the Florida tax you paid," said Joseph DiBenedetto, an accounting professor at Pace University and an accountant with Steinfink, Napoleon & DiBenedetto in Elmsford. "This is ridiculous, it really is."
    The state has done practically nothing to publicize the move. But there, on line 56 of the New York state tax form, is an entry for taxes on out-of-state goods.
    Because most people have only just begun to compute their taxes for the year, the new line item has yet to generate much feedback. However, accountants recently said they are preparing for a blitz of questions and complaints once clients realize what's now required.
    "This is a tax that people are going to have to pay that they have never really paid before," said Frank A. Pellegrino, 54, a partner in Pellegrino and Sherwin LLP in Hawthorne. "We haven't heard the complaints yet, but I am sure we will. It is a matter of when, not if."
    Technically, New Yorkers have long been responsible for giving the state any sales or use tax that was not computed at the time they bought an item. Nobody seemed to take notice, however, until the advent of e-commerce and lawmakers realized that millions, perhaps billions, of dollars in possible tax revenue was being lost each year.
    So with the state in an enormous budget crisis, the Legislature last year saw a chance to generate much-needed revenue.
    "These are taxes that should be paid," said state Sen. Nicholas Spano, R-Yonkers. "They are just, right now, uncollected."
    The state's 2003-04 budget, which was put in place by the Legislature after overriding the vetoes of Gov. George Pataki, created the new line item on the tax form. The form and accompanying booklet give New Yorkers multiple options to compute the amount:
    • Declare no purchases of non-taxed items and list zero as the amount;
    • Itemize purchased goods and compute the tax owed using the instructions given; or
    • Estimate the amount using an accompanying chart that is based on adjusted gross income.
    Under the income chart, a person who earned between $50,001 and $75,000 in gross income would pay $34 in estimated sales tax. For a person who earned $75,001 to $100,000, the amount is $43.
    "I think it is going to be a problem for both the people who are filing returns and the professional preparers," said DiBenedetto, who is sending a memo to his staff to make sure that they inform their clients about the new requirement.
    "If you answer that you owe no tax and you do owe tax, you have effectively perjured yourself."
    Spano said lawmakers realized that the new requirement could inconvenience tax filers, but they hope that it will eventually prompt the federal government to adopt a national system for collecting sales taxes on the Internet and other out-of-state purchases.
    The Legislature's budget estimated a $25 million increase in revenue during the current fiscal year because of the new requirement. The fiscal year ends April 1.
    Pataki administration officials, however, are less optimistic, saying they are not counting on any added revenue from the change. They believe many people will ignore the new line item and any money that does come in, will do so after the fiscal year ends.
    They also made it clear that the Legislature enacted this change despite Pataki's vetoes.
    "We are getting calls that say 'Where did this come from?' or 'Why are you doing this?' " said Michael Bucci, a spokesman for the state Department of Taxation and Finance. "The bottom line is, we were forced by law to do this."
     
  2. ChrisBEA

    ChrisBEA Screenwriter

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    This has to be a joke, I find no mention of this tax on the New York State Department of Taxation page, plus there is no line 56 on the tax return form.
     
  3. Todd_Brown

    Todd_Brown Second Unit

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    Ohio has had this for a while. It is a voluntary reporting tax, the state has NO ABILITY to figure out if you made a purchase on-line, it's (the state) hoping you will just provide the info and pay the tax. I'm not advocating lying, but just think about what level of man power it would take for the state to figure out if any of its citizen's purchased something on line.
    Todd
     
  4. Jason Hughes

    Jason Hughes Supporting Actor

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    (sigh)They pulled a similar stunt in Michigan. Politicians sure love to seal, but they will be damned if they ever give.
     
  5. Michael Reuben

    Michael Reuben Studio Mogul

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    Moved to After Hours. This doesn't belong in Software. Comments about "politicians" like the one in post 4 above are the quickest way to ensure that the thread will be closed.

    M.
     
  6. Paul_Scott

    Paul_Scott Lead Actor

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    problem is, i found this news over on another forum where it was in the 'software' section.
    if it had been relegated to the hinterlands there as well, i would, as i assume a lot of other NYS residents are, still be completely unaware of this.

    and a good deal of my online purchases were...dvds.
     
  7. Grant B

    Grant B Producer

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    Uuummmm maybe arnold is bored, he has fixed kaliforniiaa
    He can help you......PLEEEEEEZE!
     
  8. Wayne Bundrick

    Wayne Bundrick Cinematographer

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    Most states expect their residents to declare and pay sales taxes on everything they bought mail order or on the Internet from out of state.
     
  9. Malcolm R

    Malcolm R Executive Producer

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    As Wayne said, I thought this was common to all states with Sales Tax? Vermont has always had this on the tax form for as long as I've been alive. Especially since we share a border with tax-free New Hampshire. It's voluntary, of course, as there is really no way for them to know what you've bought or in what quantities.
     
  10. Michael Reuben

    Michael Reuben Studio Mogul

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  11. Scott L

    Scott L Producer

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    The first time I saw this line on my 1040EZ a couple of years ago I started sweating as I bought most of my HT over the net that year. I left it blank and I'm glad I did. I paid for shipping and the shipping companies certainly get taxed by the states they do business in. Well that's one way to rationalize it anyway. :wink:
     
  12. Julian Reville

    Julian Reville Screenwriter

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    Some governmental simpletons seem to think they have done their jobs simply by promulgating some uninforcible regulation. No way will a voluntary reporting ever net states enough money to make it worthwhile.

    Anyone who runs a B&M business knows that the only way to collect sales tax is to have the business collect it at the time of sale. Trouble is, we are still a nation with 50 different sets of rules; an honest person couldn't keep up with ALL of them even if they tried.
     
  13. Rob Lutter

    Rob Lutter Producer

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    Go Florida! No state income taxes! [​IMG]
     
  14. Richard Gilmore

    Richard Gilmore Stunt Coordinator

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    It would cost more for the states to check the purchases than they would get in taxes. It makes it obstensibly a "voluntary tax".
     
  15. Marvin

    Marvin Screenwriter

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    The problem isn't the (progressive) income tax. It's states that rely on regressive sales taxes, and are now whining about not collecting this money due to internet sales.
     
  16. Mark Philp

    Mark Philp Second Unit

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    Come on Marvin. You and I both live in NY and we know that the state would put a tax on breathing if there was a way for them to monitor it. Well, let's see the average person breaths how many times a minute? Now they want to add an additional 4% tax on tickets to all sporting events on top of the sales tax already charged. I'm not a sports fan, but if that goes through can a tax on movies or DVD rentals be far behind? And they wonder why people are moving out of the state.[​IMG]
     

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