Mayor Bill de Blasio is aiming to raise taxes on virtual retailers that do business in New York but have no physical presence in the city.
The proposal includes raising taxes on online companies that have yet to open offices in town, Crain’s reported. Businesses without operations in the city have avoided paying taxes on millions of transactions made with customers in New York.
The change would remove the tax break that rewards employers for basing workers outside of New York, Crain’s reported. The idea: to persuade online companies to open up offices and storefronts.
The mayor’s proposal would also align the tax treatment of online retailers with that of the state’s. [Crain’s] — Claire Moses