Retailers push for level online playing field

Following a recent U.S. Supreme Court decision, Seaford and Wantagh joined business owners across Long Island to call for state legislation they say would level the playing field between in-state and out-of-state online retailers.

The high court’s June 21, in South Dakota v. Wayfair et al. (see box, page 23) will now permit 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.

Karen Cass, president of the Seaford Chamber of Commerce, said it was imperative for the local economy that New York state adopt legislation to account for sales taxes online. Cass, a real estate agent with Shane’s Anchor Realty and a Seaford resident for 45 years, said that while she is in a service-oriented industry, her office is on a main street, surrounded by goods-oriented “mom-and-pop” shops.

“If those businesses go out, it affects my business and it affects the properties behind us,” Cass said. “We’re all connected.”

She added that consumers should be aware that when they shop online, “it brings no sales tax here, which makes our property taxes go up.”

“We have to pay for police, firefighting, et cetera, to keep Long Island great — we can’t do that without it,” she said. “When you ‘click,’ you really go against our community. You put money elsewhere. You’re not investing in our Main Street community or our property values. Seaford is a ‘mom-and-pop’ town.”

Cass was among those representing the Seaford Chamber of Commerce on Amazon Prime Day — July 16 — to rally for a state law to charge sales taxes online. Dozens of Long Island business owners gathered outside P.C. Richard & Son in Plainview also pushed for websites like Amazon, Overstock and Wayfair to implement the tax before legislation forcing them to do so is passed.

Kenneth Jacobsen, first vice president of the Seaford Chamber of Commerce and a financial adviser at LPL Financial — and a large stuffed dinosaur from Fun Stuff Toys on Merrick Road in Seaford — were also on hand to lend support at the rally.

Michael Harrison, president and CEO of Axcelsior Strategic Solutions and a Chamber of Commerce consultant, said that the current state of affairs “creates an un-level playing field.”

“We need legislation to be able to begin, and the South Dakota law should be a model,” he said.

Gary Sirota, owner of Brands Cycle and Fitness in Wantagh, agreed, saying that “as a brick-and-mortar store, it [would] level the playing field.”

Julie Marchesella, owner of Merrick’s Queen of Hearts and a past president of both the Nassau Council of Chambers of Commerce and the Merrick chamber, 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, who attended the rally, explained that a mandated online sales tax could help Nassau and Suffolk counties fill their budget deficits. “It would be a win-win all around,” Drucker said. “It would be a win-win for the state, for Long Island and for the community. 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.”

“We have to stop [online shopping] if we want Long Island to keep being the suburban place where you want to live and raise a family,” Cass added. “If you want that, you have to invest locally and help the economy.”

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