Counties and New York State have seen historically slow growth in sales tax revenues due to a combination of factors, including the Great Recession and an increase in Internet retail activity. The state’s outdated tax collection system is creating an unfair playing field for local retailers in New York versus their Internet based competitors, as many Internet retailers do not collect sales tax. Meanwhile, brick and mortar retail stores in communities across the state have seen a reduction in retail activity, with some closing and laying off New Yorkers who work and live in our communities. In addition, counties rely on local sales tax receipts to offset property taxes and to deliver essential public services, while also providing a significant revenue source for cities, towns, school districts and villages through sales tax sharing arrangements.
The Governor is proposing to update New York’s sales tax collections process to ensure that sales taxes owed are collected regardless of the method of purchase. The proposal would require large Internet marketplace providers to collect sales tax on behalf of all vendors that use their platform and remit these sales taxes to the State
Statements by Erie County Executive Mark Poloncarz and Chautauqua County Executive George Borrello Urging State Lawmakers to include the Internet Fairness Conformity Act in the 2018-19 State Budget
Erie County Executive Mark Poloncarz:
“The state’s outdated tax collection system creates an unfair playing field tilted against retailers based in New York while favoring their Internet-based competitors housed in other states, as most third-party Internet retailers do not collect sales tax. Local retailers are struggling under the unfair advantage our outdated tax law gives to businesses in other states, and I urge the State Legislature to streamline this process and enact the Governor's Internet Sales Tax Conformity Act as part of the 2018/19 state budget.”
Chautauqua County Executive George Borrello:
“The proposal is not a new tax and does not increase sales taxes, but would help the brick-and-mortar businesses in our community to compete fairly with online retailers. It’s time to stand up for our local businesses and close this loophole.”
New York State Association of Counties Executive Director Stephen Acquario:
“Counties support the Governor’s proposal that updates our current sales tax system to accommodate changes in the retail marketplace, while creating a fairer retail marketplace for our local retailers.”
“Counties support the Governor’s proposal that updates our current sales tax system to accommodate changes in the retail marketplace, while creating a fairer retail marketplace for our local retailers.”
