Amazon Sues New York

-- Publishers Weekly, 5/1/2008 8:00:00 AM

They said they would and they did. Amazon has filed suit in New York challenging the constitutionality of the state’s newly signed measure requiring out-of-state online retailers to collect sales tax on purchases made by residents of the state. The company maintains that because it has no physical presence in the state it has no nexus requiring it to collect tax. The New York statute says that members of Amazon’s affiliates program does in fact provide nexus. News of the suit first appeared in this morning’s Shelf Awareness.