New York Jettisons Controversial Online Sales Tax Proposal From FY 2018 Budget

The New York Legislature passed a version of the FY 2018 budget Monday without the controversial marketplace sales tax. The proposed tax, included in Gov. Andrew Cuomo’s (D) original FY 2018 budget proposal, would have required “marketplace providers” to collect New York’s state and local sales taxes on any items shipped into the state from out-of-state sellers. TechNet and the Web Enabled Retailers Helping Expand Retail Employment (WE R HERE) Coalition campaigned against the proposed tax (see 1703070034). Cuomo agreed to jettison the marketplace sales tax proposal from the final budget and didn’t comment on the decision in a Monday statement lauding the budget’s passage. The online sales tax proposal’s removal “is a win for online shoppers, e-commerce businesses, and future startups that decide to locate in New York State,” said TechNet Executive Director-Northeast Region Matthew Mincieli in a statement. “This measure was bad policy that would have set a dangerous precedent across the country.”