New York Opens the Door for Income Tax on Internet Sales (1)

New York is expanding the reach of its corporate income tax to thousands of additional online businesses, issuing a draft rule that peels back protections previously allowed under a federal law designed to shield out-of-state retailers from state taxes.

The state Department of Taxation said Friday that it planned to conform with August guidance from the Multistate Tax Commission that updated how states should rethink the federal law at a time when so much commerce happens online. The commission specified that orders for tangible personal property are the same whether the transaction occurs on the internet or in person.

The ...