Overstock Not The Only Company To End Relationship With State Companies
The Courant was the first to report that Overstock.com has pulled its business from affiliated companies in Connecticut due to the adoption of the so-called Amazon tax, but it’s not the only one.
Tom Caporaso, of Clarus Marketing Group in Middletown, said he’s been receiving notices from Internet sellers on a daily basis.
Here is a list Caporaso, who runs freeshipping.com, sent Tuesday evening:
HSN, 1800 PetMeds, Tog Shop, AppleSeeds, Steep and Cheap, Whiskey Militia, Chain Love, Bonk Town, Hayneedle, Indochino, Moonstruck Chocolate, Etronics, Dyson, Build.com, FaucetDirect.com, LightingDirect.com, VentingDirect.com, Handlesets.com, VentingPipe.com, Lamps Plus, Glyde, Casual Living, Luggage Online, Costume Kingdom, NBTY, CSN Stores, Cookware.com, Gardener’s Supply, Tea Forte, MotorMint, Design Linens Outlet, Buy Costume, Celebrate Express, Overstock.com, OfficeFurniture, Birthday Express, Costume Express, 1st Wishes, and Northern Tools.
“Did the representatives really think they weren’t going to do this?” Caporaso who warned lawmakers earlier this year that this would happen if they forced remote sellers to collect sales taxes for the state. “We are getting a couple everyday now and I am sure it will pick up as we get closer to July 1.”
Department of Revenue Services Commissioner Kevin Sullivan wrote this letter to Gov. Dannel P. Malloy’s Budget Director Ben Barnes in April warning him the state will have difficulty collecting the taxes from these companies.
Sullivan wrote that no state that has passed similar legislation has been able to collect the tax. But Sen. Eileen Daily, co-chairwoman of the Finance Committee, said there have been adjustments to the language, which will help Sullivan collect the tax. That language still needs to be drafted and approved by the General Assembly.
However, Sen. Andrew Roraback, R-Goshen, remained skeptical of the state’s ability to collect sales tax from Internet companies.
“Companies act rationally,” Roraback said. “I think there are going to be more companies leaving the state when the tax is enacted on July 1.”
He said he thinks Sullivan is a smart guy and if he says it can’t be collected, then it probably can’t.
“We’re supposed to be in shock and awe when everyone knew what was going to happen?” Roraback said.
But Daily said Roraback shouldn’t be so quick to judge. She said in the next few days Sears will be announcing its inviting people to contact them and are ready and eager to service any customer online. She said other companies are expected to follow and fill the void left by more fickle Internet retailers unwilling to collect the tax.
“This bill is doing exactly what we intended by strengthening Connecticut companies,” Daily said. “Now that a Utah company is pulling out we’re strengthening our own.”