Because It’s Such a Privilege to Sell Into New York

Not only do New Jersey merchants (and denizens in general) get the short end of the cultural stick vis-à-vis their neighbor to the East, right across the Hudson River, but now they’ll have to pay for the privilege of collecting sales taxes for New York.

New Jersey businesses, along with several other border states, have been required to pay a $50 re-registration fee to qualify for certification as a tax collecting authority for the state of New York, known as a Certificate of Authority, technically since November 1, 2008. But now the state is collecting. According to a NorthJersey.com article, that $50 fee would net approximately $30 million for New York, assuming 600,000 authorized tax collectors in the affected states.

Failure to renew a Certificate of Authority before its expiration date (as indicated on the notification letter) would result in illegal business conduct where New York State may impose a penalty up to $10,000, as well as pursue a misdemeanor charge.

For those registered vendors who are no longer in business, they do not to renew their Certificates of Authority and should close their sales tax accounts by contacting New York State at (518) 457-0260. For more information, merchants can visit New York’s Department of Taxation and Finance, Renewal of Sales Tax Certificate of Authority, here.

But why a re-registration at all? Evidently, New York has an interest in ensuring the number and identity of merchants/authorized tax collectors.

Makes sense, but it’s too bad it can’t do so without the $50 fee, particularly in such a steep recession economy. 

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