May 7, 2008
Amazon Fights New York State Tax Law
New York recently passed tax legislation requiring online retailers to collect a sales tax on items shipped to the state, this applies specifically to any online retailers with affiliates in New York. Estimates of how much revenue will be generated as a result of the new law are as much as $50 million.
In response to the new law, Amazon.com has sued the state of New York making two claims. First, that the law violates the Commerce Clause U.S. Constitution by collecting taxes from out-of-state entities. And second, that it is in violation of the Equal Protection clause since it directly targets Amazon and has even been referred to by some state officials as the "Amazon tax". Amazon has also made the argument that it's affiliates in New York function completely independently of Amazon and do not generate sales for them.
In response to the new law, Amazon.com has sued the state of New York making two claims. First, that the law violates the Commerce Clause U.S. Constitution by collecting taxes from out-of-state entities. And second, that it is in violation of the Equal Protection clause since it directly targets Amazon and has even been referred to by some state officials as the "Amazon tax". Amazon has also made the argument that it's affiliates in New York function completely independently of Amazon and do not generate sales for them.
Post Perma Link posted by TV Overstocks @ 1:22 PM 
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