NY defeats Amazon in suit over online tax haul

By: The Citizen staff report

Tuesday, January 13, 2009 10:44 AM EST

ALBANY -- New York state has won a round in court against Amazon.com over a new law requiring out-of-state online companies to collect sales tax from shoppers in New York.
The law applies to companies that don't have offices in New York, but have at least one person in the state who works as an online agent — someone who links to a Web site and receives commissions for related sales.

A state Supreme Court justice in Manhattan is dismissing the suit, saying Amazon had no basis for legal action.

Officials at Amazon didn't immediately return calls for comment. The company sued last year, challenging the constitutionality of the legislation. It could still appeal.

Officials estimate the state would gain about $50 million from the tax.

The Citizens' Say

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There are 2 comment(s)

Farmer's Gal wrote on Jan 13, 2009 1:12 PM:

" Amazon handled the deal TERRIBLY. As someone working at a not-for-profit institution (i.e. we don't pay sales tax), heading a department where people place book and video orders all day long, many of them with Amazon, this was a nightmare for us. Amazon knew this was coming months ahead, and even sent out notices to customers like us -- but then when the change happened, they didn't take care of it -- and their system kept trying to charge us sales tax. The college will not pay sales tax, so we were caught in the middle between the credit card companies which had paid the tax we weren't supposed to be charged and the college which will not pay tax it should never have been charged for materials faculty wanted for their courses -- what a mess! It took a month and a half for them to fix their system -- a month and a half AFTER the change which they had long before known was coming.

Major pain. "

childofthekorn1318 wrote on Jan 13, 2009 12:04 PM:

" new york state is getting rediculous, they tax and tax and tax and tax, but they don't slow spending, so we constantly remain in deficit... "

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