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Sales tax fee riles up retailers
By Francesca OIsen
Hudson-Catskill Newspapers
Business owners across New York state have received instructions to reregister their sales tax certificates, and pay a $50 fee, and retailers statewide — including independent business owners here in Columbia County— are up in arms.
The registration, now required by the state Department of Taxation and Finance, began late last year and is projected to finish by March 2012. About 80,000 mailers have gone out so far. Businesses who file quarterly or monthly sales tax returns must reregister their sales tax certificates for $50, or face additional fines and even misdemeanor charges.
Sales tax certificates allow the state to collect sales tax from businesses, and the fee is expected to generate about $15.5 million for the state.
"I absolutely hate this," said Stephen Campbell, owner of Video Visions in Chatham. "It's an underhanded way to collect money for the state. I've had the same tax form for 25 years, and all of a sudden they decide they have to reregister you."
Campbell has owned his business 25 years, and this is the first time he's had to reregister. He got the letter and reregistered, but ended up completing the application after deadline due to complications with the state Web site.
"They have a web site you can go to so you can renew, and they'll take the money right out of your bank account, if you like. The best part of it is, I tried that site several times, and it didn't work," he said.
"By the time I gave up and called their number, it said 'call for a form to be mailed to you.' I called and got the form. It said, 'be prepared to wait for 10 days.' The best part is, they put a deadline on the recertification.
"By the time I ordered the form, it's late. By the time the form gets here, now I'm overdue.”
The story goes on. Finally, Campbell went back to the site, successfully reregistered, only to be a few days late on the deadline.
"If they dare to charge me, I am going to raise holy hell," Campbell said. "What a rotten process this whole thing was, right from the beginning."
When business owners fail to renew certificates, it becomes illegal to do business. If he or she conducts business without the renewal, the state may impose a penalty up to $10,000, and business owners may be subject to a misdemeanor, according to the state Department of Taxation and Finance.
Dave Colby, president of the Columbia County Chamber of Commerce, disagrees with the new fee. "Our feeling is, it's just not a good way to do business. The way businesses operate, you control your costs, you become more efficient. It seems the state's response to their revenues being down is to tax and fee us to death.
"To me, it just seems crazy...I really feel the state's going about this the wrong way.
"It's just one more way the state is making it more expensive to do business. It's $50, but just on principle, it's a very difficult time for revenues for a lot of businesses. They make cuts where they need to. They create efficiencies. I don't see much where the state is creating efficiencies."
Kathy Stumph, owner of Chatham Kids, a children’s store, said, "I think it's outrageous. Number one, we have to collect the taxes. Then, we have to pay in order to do it. It just doesn't make any sense to me at all."
Stumph hasn't gotten her renewal letter yet; she files her sales tax returns annually.
"Businesses try so hard. In New York state, you get taxed right off the planet!" she said. "I understand New York is in dire straits and needs to raise funds, but it seems a bit absurd to add this to the shopkeepers, who are already struggling at this point."
"This is just the beginning," predicted Campbell, the video store owner. "New York state is in so much trouble, they're going to make up all these fees and these fines."
The registration, now required by the state Department of Taxation and Finance, began late last year and is projected to finish by March 2012. About 80,000 mailers have gone out so far. Businesses who file quarterly or monthly sales tax returns must reregister their sales tax certificates for $50, or face additional fines and even misdemeanor charges.
Sales tax certificates allow the state to collect sales tax from businesses, and the fee is expected to generate about $15.5 million for the state.
"I absolutely hate this," said Stephen Campbell, owner of Video Visions in Chatham. "It's an underhanded way to collect money for the state. I've had the same tax form for 25 years, and all of a sudden they decide they have to reregister you."
Campbell has owned his business 25 years, and this is the first time he's had to reregister. He got the letter and reregistered, but ended up completing the application after deadline due to complications with the state Web site.
"They have a web site you can go to so you can renew, and they'll take the money right out of your bank account, if you like. The best part of it is, I tried that site several times, and it didn't work," he said.
"By the time I gave up and called their number, it said 'call for a form to be mailed to you.' I called and got the form. It said, 'be prepared to wait for 10 days.' The best part is, they put a deadline on the recertification.
"By the time I ordered the form, it's late. By the time the form gets here, now I'm overdue.”
The story goes on. Finally, Campbell went back to the site, successfully reregistered, only to be a few days late on the deadline.
"If they dare to charge me, I am going to raise holy hell," Campbell said. "What a rotten process this whole thing was, right from the beginning."
When business owners fail to renew certificates, it becomes illegal to do business. If he or she conducts business without the renewal, the state may impose a penalty up to $10,000, and business owners may be subject to a misdemeanor, according to the state Department of Taxation and Finance.
Dave Colby, president of the Columbia County Chamber of Commerce, disagrees with the new fee. "Our feeling is, it's just not a good way to do business. The way businesses operate, you control your costs, you become more efficient. It seems the state's response to their revenues being down is to tax and fee us to death.
"To me, it just seems crazy...I really feel the state's going about this the wrong way.
"It's just one more way the state is making it more expensive to do business. It's $50, but just on principle, it's a very difficult time for revenues for a lot of businesses. They make cuts where they need to. They create efficiencies. I don't see much where the state is creating efficiencies."
Kathy Stumph, owner of Chatham Kids, a children’s store, said, "I think it's outrageous. Number one, we have to collect the taxes. Then, we have to pay in order to do it. It just doesn't make any sense to me at all."
Stumph hasn't gotten her renewal letter yet; she files her sales tax returns annually.
"Businesses try so hard. In New York state, you get taxed right off the planet!" she said. "I understand New York is in dire straits and needs to raise funds, but it seems a bit absurd to add this to the shopkeepers, who are already struggling at this point."
"This is just the beginning," predicted Campbell, the video store owner. "New York state is in so much trouble, they're going to make up all these fees and these fines."
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