Leveling the playing field

Following a recent U.S. Supreme Court decision, local business owners are calling for state legislation that they say would level the playing field between in-state and out-of-state online retailers.

The high court’s June 21 South Dakota v. Wayfair decision now allows states to mandate a sales tax for items purchased online from out-of-state retailers — and local retailers want New York to ensure that a sales tax is charged regardless of the sites that online shoppers buy from. First, though, state lawmakers must pass a measure requiring online sales taxes.

Steve Silverman, owner of Morton’s Official Camp Outfitter, thinks that should New York state pass a law charging online retailers state sales tax, and then they would be better equipped to compete with companies like Amazon. “If it levels the playing field I think it would be a really good thing,” said Silverman. “We’re at a very unfair disadvantage.”

According to the owner of Five Towns Gifts and Crafts on Central Avenue in Cedarhurst, Thomas Wong, charging a state sales tax on purchases made at online retailers like Amazon could bring more business. “Some people just come in to look around and then just buy what they’re looking at online,” he said. “Hopefully [passing a law] could help with that.

On July 16 — which was Amazon Prime Day — dozens of Long Island business owners gathered in Plainview to rally for a state law mandating online sales taxes. They also pushed for websites like Amazon, Overstock and Wayfair to implement the tax before legislation forcing them to do so is passed.

The law passed in South Dakota after the high court ruling has stipulations: Out-of-state online retailers charge the tax only if they clear $100,000 in sales in South Dakota, or have 200 separate transactions with South Dakota customers.

Julie Marchesella, owner of Merrick’s Queen of Hearts and past president of both the Nassau Council of Chambers of Commerce and the Merrick Chamber of Commerce, agreed. Nassau County could see revenues of $50 million to $100 million, she said, if the state were to pass similar legislation.

Nassau County Executive Laura Curran said the ruling “gives a tremendous boost of confidence to local businesses that struggle to compete with internet commerce.”

Nassau County Legislator Arnold Drucker, a Democrat from Plainview who attended Monday’s rally, explained that a mandated online sales tax could help Nassau and Suffolk counties to fill their budget deficits.

“It would be a win-win all around. It would be a win-win for the state, for Long Island and for the community,” Drucker said. “America was built on brick-and-mortar stores. They are the middle class, and we’ve gotten away from supporting them. This could be a wake-up call to support local businesses.”

James Gazzale, a representative for the state Department of Taxation and Finance, said last month that state officials are reviewing the Supreme Court decision.