Legal Industry News

January 20, 2009

NY judge Dismisses Amazon.com’s Challenge to Web Sales Tax Statute

A Manhattan, N.Y., Supreme Court justice has dismissed Amazon.com’s challenge to a new New York state tax statute that requires many online retailers to collect state sales tax on purchases by New York residents. Amazon.com filed the lawsuit in April 2008, alleging that the statute violates the Commerce Clause of the U.S. Constitution and the Due Process and Equal Protection Clauses of both the state and federal constitutions.

The state judge ruled that the statute contains the requisite requirement that an online retailer must do a substantial amount of business in New York before it can be forced to collect…

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