Facing budget shortfall, Cuomo looks to apply taxes to all internet sales

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PLAINVIEW -

Days after sounding the alarm that New York is facing a $2.3 billion budget shortfall, Gov. Andrew Cuomo is proposing a way to generate millions in tax revenue to fill that hole by applying sales tax to all internet sales.

Cuomo's proposal would require all companies that sell products online to collect state and local sales taxes -- 7 percent in most of the state. He says it would bring in $250 million in tax revenue to the state a year.

The governor says the move would help level the playing field for mom-and-pop stores, many of which say they're at a disadvantage to internet-based sellers who can avoid charging sales tax.

MORE: Lawmakers vow no tax raise for LI as state faces $2.3B shortfall

Marketing expert Jack Mandel says that while Cuomo's plan would generate money for the state, it probably won't benefit traditional stores in the long run.

News 12 spoke with people who had mixed feelings on the proposal. Craig Markell, of Syosset, says it would likely get him to make more in-store purchases. But Hicksville's Theresa Jilling says it probably wouldn't change her buying habits.

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