Residents of the states with sales tax will cross those borders to buy things at said stores, thus avoiding the tax.
NY/NJ
Should those stores be obligated to collect tax for the sales tax states? If not, why doesn't the same rule apply to mail order and the internet?
In the case of NY, if you buy goods out of state you are expected to pay NY state sales tax on them.
Growing up in Washington Heights, a few blocks from the George Washington Bridge, people would regularly grab the bus over to one of the Jersey malls for various items on which there was either no state sales tax or a much lower tax. Clothing was a big item. Also gas was always cheaper, for the few I knew who had cars.
Many years later I learned that New York State expected its residents to duly report these purchase and pay NY State use tax on these out-of-state purchases.
I'm sure that happened a lot.
But it's an interesting point. If Amazon is not collecting sales tax based on the customers state of residence (a la NJ and NY) then the state should be going after the customer for the use tax (something Washington state has done for purchases made from Oregon-based stores).
NY/NJ
Should those stores be obligated to collect tax for the sales tax states? If not, why doesn't the same rule apply to mail order and the internet?
In the case of NY, if you buy goods out of state you are expected to pay NY state sales tax on them.
Growing up in Washington Heights, a few blocks from the George Washington Bridge, people would regularly grab the bus over to one of the Jersey malls for various items on which there was either no state sales tax or a much lower tax. Clothing was a big item. Also gas was always cheaper, for the few I knew who had cars.
Many years later I learned that New York State expected its residents to duly report these purchase and pay NY State use tax on these out-of-state purchases.
I'm sure that happened a lot.
But it's an interesting point. If Amazon is not collecting sales tax based on the customers state of residence (a la NJ and NY) then the state should be going after the customer for the use tax (something Washington state has done for purchases made from Oregon-based stores).