Judge Tosses Amazon Challenge to NYS Tax
-- Publishers Weekly, 1/13/2009 1:13:00 PM
A New York State judge has dismissed a lawsuit filed by Amazon challenging the constitutionality of New York’s decision to force out-of-state online retailers to collect sales tax from New York residents who buy items from the e-tailer. Amazon filed suit shortly after New York ruled in April that Amazon had enough of a “nexus” in the state to be required to collect sales tax. In its suit, Amazon charged that the ruling was too broad and unfairly targeted the retailer. But in her opinion, judge Eileen Bransten said the law was “carefully crafted” and did not target Amazon unfairly. The judge also found that Amazon had a nexus in the state. A similar lawsuit brought by Overstock was also dismissed.
The ABA has long argued that all e-tailers should be required to collected sales tax. ABA COO Oren Teicher was delighted with the ruling. “"It's extremely gratifying that the New York State Supreme Court's decision in this case so categorically affirms the responsibility of all retailers to obey existing sales tax law and to collect the required sales tax on Internet sales,” Teicher said in a statement. “We strongly encourage the taxing authorities in other states throughout the U.S. to follow New York State's lead on this issue and to take the necessary steps to ensure the all retailers comply with the law. Throughout this effort we have consistently said that it's not the job of government to pick favorites between competing retailers; and, in essence, that's what the court has said."
An Amazon spokesperson had no comment on the decision, although an appeal is expected. The company has been collecting New York sales tax since last spring.
