Sales Tax Initiative

Following up on letters sent by New York booksellers to their state legislators, on Wednesday, March 19, American Booksellers Association staff joined representatives of the Retail Council of New York in Albany, where they met with key legislators from both the Assembly and Senate in support of the Internet Sales Tax provision's inclusion in the final state budget.

New York State Assembly passes budget with Internet sales tax proposal Even in a week when New York's capital was shaken by scandal and the daily workings of legislators were thrust into an unprecedented state of uncertainty, the New York State Campaign for E-Fairness continued to make important strides.

The American Booksellers Association continues to urge New York State bookstore members to voice their support for the Internet Sales Tax provision in Gov. Eliot Spitzer's proposed budget. To help in this important outreach, this week ABA is making available Op-Ed and Letter to the Editor templates that booksellers can adapt and send to local media.

On Wednesday, February 27, the American Booksellers Association called on member bookstores in New York State to voice their support for the Internet Sales Tax provision in Gov. Eliot Spitzer's proposed budget by writing to both their state senator and assemblyperson. If the budget is approved with the provision, out-of-state online retailers selling products in New York State will be required to collect state sales tax. The budget, which is due by April 1, will be debated by legislators throughout March.

This week, Amazon.com announced that it plans to fight New York Governor Eliot Spitzer's proposal to require online retailers with certain selling activities in the state to collect and remit sales tax for sales made to in-state customers, according to published reports. In response, on Wednesday, February 13, the American Booksellers Association reiterated its support for Governor Spitzer's action.

This week, North Carolina responded to the letter from the American Booksellers Association and seven other trade groups that called for the equitable enforcement of sales tax laws on online purchases. In addition, both Iowa and Tennessee sent second letters in response to ABA's follow-up letters that the association mailed on behalf of the independent trade groups.

To date, 15 states have responded to a letter from the American Booksellers Association and seven other trade groups that calls for the equitable enforcement of sales tax laws on online purchases: California, Hawaii, Indiana, Iowa, Kansas, Louisiana, Maine, New Mexico, New York, Ohio, Tennessee, Washington, Washington, West Virginia, and Wyoming.

On Tuesday, January 22, New York State Governor Eliot Spitzer announced that he is seeking legislative approval to clarify what constitutes nexus for online retailers selling to New York State residents. The provision, which is contained in the state's Executive Budget-Briefing Book, stipulates that online retailers that have certain selling activities in the state, such as Amazon.com, should be required to collect and remit sales tax for sales made in New York State.

What is "e-fairness"?

This week, seven independent trade groups, including the American Booksellers Association, followed up with officials from the 14 states that responded to, or acknowledged, the groups' letter from December calling for the equitable enforcement of sales tax laws. Thus far, states responding to the groups' initial letter are California, Hawaii, Indiana, Iowa, Kansas, Louisiana, Maine, New York, Ohio, Tennessee, Washington, West Virginia, Washington, and Wyoming.