Newegg reverses practice of charging New York sales tax

By Dawn Kawamoto, CNET

New York customersConsumerist

The move by Newegg reverses action the online retailer took in June, in which it began to charge applicable sales tax for all shipments to New York, following passage of a new state law that required certain companies to charge sales tax on shipments to New York state.

Effective August 21, however, Newegg discontinued the practice and is leaving it up to New York residents to pay that sales tax themselves. That policy basically returns the responsibility of paying sales tax for online purchases back to the New York consumer, which was the case prior to the New York legislature passing its law earlier this year.

Newegg is not the only retailer taking a stand against the change in law. Earlier this year, Amazon filed a lawsuit against the state, claiming its law was "invalid, illegal, and unconstitutional." And online retailer Overstock has taken similar legal action. Amazon, however, has since said it will abide by New York law and collect the taxes.

Calls to Newegg were not immediately returned.

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