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Amazon sues New York about new tax

Amazon.com has filed a lawsuit challenging New York State’s new law forcing online retailers to collect sales tax on shipments to state residents. On Friday, Amazon filed a complaint in State Supreme Court in Manhattan objecting to the law, which was approved as part of the $122 billion state budget that Gov. David A. Paterson signed last week. The law is expected to raise about $50 million. The issue is not whether people should pay tax when they buy goods from out-of-state sellers like Amazon. For decades, the state has required them to pay sales or use tax. The question is whether the vendors must collect that tax on behalf of the state.

Generally, only those companies that have a physical presence — like an office or store — in the state where the purchase is made are required to collect the tax. The law says that if even one of those affiliates is in New York State, Amazon must collect sales tax on everything sold in the state, even if it is not sold through the affiliate. This is an extension of an existing rule that companies employing independent agents or representatives to solicit business must collect taxes for the state. Amazon’s suit challenges the constitutionality of this interpretation and seeks a declaratory judgment that it is invalid. The company’s complaint argues that the statute is “overly broad and vague.” It is impossible, Amazon wrote, for it to determine which of its affiliates are actually in New York State.

Source: NY Times 

Comments (13)

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  1. *************SEBASTO***************
    May 5th, 2008 | 12:30

    No comments yet. Be the first.

    so i am…..yeah…….the only one…….

    ..and yes….anyone should pay taxes ….I DO…!!!

  2. uncle sam
    May 5th, 2008 | 12:43

    why do you pay taxes again?

    oh because i said so !!

  3. BustaLinx
    May 5th, 2008 | 13:53

    The hell did my post go?

  4. gavrielle
    May 5th, 2008 | 15:59

    I want the internet sales tax lowered to reflect the city, state, or national public services I use online and not those used when shopping in brick and mortar outlets. I understand having to pay a small percentage to help support road building and repair, mass transit, infrastructure, etc. that are accessed in the real world and for which they collect these taxes, but which of these am I using when I log in and surf? I’m tired of paying everybody else’s way too. If taxes collected via the internet were only going to support state sponsored web related infrastructure or network building issues, I’d happily agree. I’m not against sales taxes, I just want a reasonable amount of accountability in how they are collected and used.

  5. Joseph McCarthy
    May 5th, 2008 | 16:23

    Great, NY gets hosed by taxes once again.

  6. A.Bundy
    May 5th, 2008 | 18:04

    “Great, NY gets hosed by taxes once again.”

    and by no other than a blind fuker that cheated on his wife. how the hell do you cheat when you cant see who you are fuking? lol. wonder if he would sign my ass cheek so that every time i fart he has to pay me a gas tax. lol

  7. Theives of NY
    May 5th, 2008 | 19:51

    You know, when any business, especially government types must depend upon “TAXES” it means their NOT doing much business themselves, but living off the works of others…

    Why is it in that with government, and such they get to demand the profits of our people’s work? Shouldn’t the government be serving us instead of their own fat wallets?

    How many politicians are NOT just making themselves wealth, fat and enriching their own standards of living?

    TAXES are only an indication of a weakening economy. Collecting more will result in no less the same historic event that has happen many times before…

    Even the United States of America had a resolution against paying British TAXES… and what has the good old USA learned, but apparently not a dam thing by increasing TAXES…

  8. Captain America
    May 5th, 2008 | 21:18

    If you don’t want higher taxes, don’t vote for demoncrats. Case closed.

  9. Josh4721
    May 5th, 2008 | 22:18

    I buy online because stores don’t carry the same products or cost is half the price. Oh and no sales tax. FU NY

  10. Joseph McCarthy
    May 5th, 2008 | 22:41

    “If you don’t want higher taxes, don’t vote for demoncrats.”

    It’s the tail wagging the dog in NY. Voters from NYC and its suburbs pretty much run the show for the whole state.

  11. Armacalypse
    May 6th, 2008 | 02:26

    I don’t think these news affect consumers too much. Stop complaining.

  12. RlsLogKing
    May 6th, 2008 | 03:06

    in alaska we don’t pay sales tax, the price on the shelf is the price we pay. LOL @ all of U!

  13. Bioshock
    May 6th, 2008 | 04:12

    Amazon should put up business in Rapture! Pretty sure there’ll be no taxes there.

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