N.Y. Senate Seeks to Join Nationwide Sales Tax Bid

ALBANY, N.Y. -- The state Senate on Tuesday unanimously proposed that New York join a nationwide effort to begin collecting sales taxes on goods that out-of-state companies sell over the Internet or through catalogs, Newsday reported.

Senate Majority Leader Joseph Bruno, R-Brunswick, said that New York this year will lose $1 billion in taxes from sales over the Internet or by phone. The amount of untapped taxes will rise to $3.6 billion by 2006, he said, offering a generous source of revenue for lawmakers seeking to avoid deep cuts in the state's health care and education programs.

Since the Streamlined Sales Tax Project was formed three years ago, 35 states and the District of Columbia have joined the effort to devise a uniform method for collecting sales tax from retailers. New York is one of only 10 other states that levy sales taxes but has not endorsed the project.

The Democratic-led Assembly did not take a position on the Senate proposal. Gov. George Pataki's administration has been cautious about the project.

-- NYSSCPA.org News Staff

Posted on 03/12/03