Saturday, February 21, 2009

Amazon loses New York tax case

As reported in AccountingWeb, last July, Inc. filed a complaint with the Supreme Court of the State of New York saying it is unconstitutional to require e-tailers based outside of New York to collect the state's sales and uses taxes. Well apparently the judge did not agree with this Amazon's complaint because the Judge dismissed the complaint.

New York State Supreme Court Justice Eileen Bransten said that New York law requires companies to collect state and local sales taxes if the company generates $10,000 or more in revenue as a result of commissions paid to persons in New York for sales referrals. Justice Bransten wrote in her decision that, "There is no basis upon which Amazon can prevail.

Since this decision has been announced, the state of Florida and California has introduced legislation that would impose the collection of taxes by e-tailers on internet purchases.

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