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R.I. issues notice to more than 100 online retailers

4:23 PM Fri, Jul 03, 2009 |
Neil Downing    Email

The Rhode Island Division of Taxation has sent notices to more than 100 online retailers, letting them know about the state's new law that could require them to collect Rhode Island's 7-percent sales tax, state Tax Administrator David M. Sullivan said Friday.

It is the latest development in a simmering controversy involving a new state law -- sometimes called the "Amazon law" -- which generally requires out-of-state retailers to collect Rhode Island sales tax on purchases that are made through affiliated Web sites located in the state.

Amazon.com cut its ties with its Rhode Island-based affiliates over the new law; two other online retailers, Overstock.com, and Blue Nile have followed suit.

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Comments

RITaxpayer said:


Our reps are idiots. Total idiots. There can be no other explaination.



Bill said:

Thank you Rhode Island legislators for helping to increase my business. Of course, my increased income will be taxed in another state and the affiliates unlucky enough to live in your state will earn less on which to pay taxes.

Every time another state enacts what is commonly called the "Amazon Tax" I have seen our online sales increase.

Unfortunately in your haste to raise taxes in one area will cost you dearly in another. But it sure puts a smile on my face.

:)



I anticipate a flood of announcements from internet retailers who are going to sever ties with local businesses. Now Rhode Island will lose out on sales tax revenue and income tax revenue from affiliate earnings. Great job!



RJDavis said:

To RI Taxpayer:

From: A Former RI Taxpayer

The root problem is that the citizens of RI continue to elect tax and spend anti-business leftists to represent them.

RI is over taxed and over regulated. Coupled that with the pro-union policies and you have all the ingredients for high unemployment.

Until you stop electing liberal anti business big government Democrats, things will not change.



Nun said:

RI could INCREASE revenues by lowering state taxes. It would bring in MA and CT shoppers and probably new retailers. It's no mistake that Seekonk and Attleboro are lined with retailers on the border due to a lower sales tax.



David said:

The more RI increases taxes, the worse the state will be financially. More businesses will either move out or not locate in RI. More people will move out of RI, leaving the non-productive, socialist, and dead beats, to suck more out. The state will go deeper in debt. Thank Obamanomics and decades of Democrats pandering to welfare low lifes and a belief in socialist ideology. Will the last productive worker who leaves RI please turn off the lights.



Jim said:

Ditto what Bill said. Thank you for eliminating my Rhode Island competition and funneling more money into my (out of state) business.

Good job! Keep up the good work!



Online Seller said:

So what comes next, taxing ebay sales? I would not put it past the state to try and tax that as well. Perhaps moving an online business to a mailbox out of MA for mailing address purposes will be the end result of more RI online stores



RI lander that moved away said:

This is typical RI. Instead of cutting taxes the state house increases them to the detriment of the State. Good luck, RI is going down the tubes fast, you are in trouble, Seekonk and Attleboro will be where you shop now. Wise up and move. I haave been happier since I did.



buy else where said:

buy buy buy out of state
and only buy what u need in R.I.



dmgjjg said:

Amazon.com already stopped doing any business in RI. I wonder how many other retails will follow their lead and how many people will loss their jobs as a result? Once again the General Assembly makes the life of the citizens worse.



richard said:

I left RI 20 years ago and moved to a southern state where the sales and income tax are half what I would be paying in RI.OH and by the way the services I receive from my local and state government are much better than RI.Oh and by the way my property taxes are much lower; aan examole a $ 950,000 home is taxed at about $ 6,500 per year. Oh and by the way our scjools are superior; 85% of high school students go to college. Oh and by the way unions do not push our politicians around. And by the way in a county with over 1 million people we have just 17 elected officials. try that rhode island.



Mark Welch said:

My grandma always told me to write personal thank-you letters to people who gave me gifts, so I sent this email to Governor Carcieri in Rhode Island (and a similar message to Governor Perdue in North Carolina).

> Dear Governor Carcieri:

I'm writing to thank you for your kind and generous assistance to my California-based online publishing business.

By supporting the Advertising-Nexus tax law in Rhode Island, you are forcing hundreds of out-of-state merchants to terminate their paid advertising relationships with thousands of web publishers (small businesses) in Rhode Island. This creates a wonderful opportunity for me to earn more advertising revenue while helping those merchants continue to sell products to residents of all 50 states, including Rhode Island.

I really appreciate your efforts, especially since the law will bring in only a nominal amount of new sales-tax revenue, while reducing Rhode Island's income tax revenue by a larger amount. Thank you for subsidizing my business at the expense of Rhode Island's residents and small business owners.

I'm glad that California's families will benefit from the additional income taxes I pay.

Mark J. Welch
Hayward, California



No man is an island said:

Once Rhode Island (minus the Providence Plantations) secedes from the union, this will all make sense.




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