Amazon, other online retailers face NYC tax hike

Crain's New York reports:

Online retailers with ample revenue from New York City but no physical presence here could see their tax bills increase under a proposal from Mayor Bill de Blasio.

Companies such as Amazon and Wal-Mart could be affected by the change, which was introduced Monday as a move to bring the city's tax code in harmony with the state's after Gov. Andrew Cuomo lowered the state's corporate tax rate in 2004. Other online retailers like Jet.com, which is headquartered in Jersey City, would also presumably be affected.

City officials say large companies with little or no presence in New York have avoided paying taxes on millions of dollars' worth of transactions made with customers in the city. The proposed change would remove their incentive to not base employees here, perhaps motivating the companies to move workers or open offices, storefronts or warehouses in the city. Sales of at least $1 million to New York customers would trigger what officials call a "nexus" for business income taxes.

The taxman has an insatiable demand.