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Amazon Sues New York Over New 'Amazon Tax'

Friday, May 2, 2008
By bMighty.com Staff

Two weeks after New York approved a law that would force Amazon to charge sales tax to Empire State residents, the online retail giant has filed suit with the New York State Supreme Court.

In its complaint, filed April 25, Amazon asks the court to declare the "statute invalid, illegal, and unconstitutional, facially and as applied to Amazon." The new law requires out-of-state online retailers to collect and remit sales tax if they have some kind of physical presence in the state, which includes affiliates that refer sales and receive commissions.

Seattle-based Amazon calls New York's legislation too broad and vague. Through its Associates Program, the company has hundreds of thousands of affiliates, and says there's no way for it to be able to tell which ones are really in New York State.

Source(s): CNET News




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