NY High Court Upholds State's 'Amazon Tax' On Web Sales

Law360, New York (March 28, 2013, 2:02 PM EDT) -- New York's Court of Appeals on Thursday affirmed the constitutionality of the state's "Amazon tax," becoming the first state court of last resort to uphold a law requiring online retailers to collect state sales tax when they use in-state affiliates to increase sales.

The 4-1 ruling has the potential to encourage other states to enact similar laws and muddy the online marketplace across the U.S., according to lawyers for Seattle-based Amazon and its smaller, Utah-based rival Overstock.com Inc. The companies claim New York's law, passed in...
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