Gov. Cuomo eyes proposal to add sales tax to all online purchases in NY

Gov. Cuomo has proposed a plan that would allow New York retailers to charge sales tax on all Internet sales.

The proposed legislation would require all companies that sell products online to collect state and local taxes, and comes of a recent Supreme Court ruling that allows some states to tax Internet purchases.

This proposal comes days after Cuomo announced the state is up against a $2.3 billion budget gap. Cuomo says the proposed law would generate $250 million in extra tax revenue for the state each year, and that it would help to level the playing field for traditional stores who cannot avoid charging sales tax the way online retailers can.

Marketing expert Jack Mandel agrees Cuomo’s plan would generate more money for the state, but says it wouldn’t benefit mom and pop shops in the long run.

“Unless they really reach out to small businesses, and I'm talking about now, the government, at all levels – state and regional – it's not going to help in the long run,” Mandel says. “Let them make zoning easier for people, let them make maintenance to their stores easier. And this has to do with our local economy, not Cuomo.”

In Syossett, Craig Markell says the proposed legislation would “definitely” deter him from buying online.

“If I could get it local right here, I would rather do it here,” he says. “It's quicker, faster, and easier than going through online and the credit card.”

Theresa Jilling, in Hicksville, says the legislation probably would not make her change her buying habits, “because it’s just easier, it’s more convenient” to shop online.