New York's new internet tax grab challenged by Amazon.com

[Manedwolf]

Good! Amazon has lots of scary lawyers. New York, as usual, did a "Taxxxxxess...more taxxxxess, precious" bit of stupidity...and now the largest web merchant has started the lawsuits.

Amazon Sues New York for Tax Law
By MYLENE MANGALINDAN
May 2, 2008 4:31 p.m.

Web retailer Amazon.com Inc. sued New York state and its taxation department to contest the constitutionality of a new state law requiring out-of-state Internet retailers to collect New York state taxes.

The law, which went into effect April 23, requires that out-of-state Web retailers to collect sales taxes from customers in the state if the retailers have New York-based representatives soliciting business on their behalf. The state considers Amazon and other retailers to be subject to this law because they have "affiliate" marketing arrangements. An "affiliate" is someone who advertises Amazon on his Web site and receives sales commissions after a Web site visitor makes a purchase on Amazon.

In its complaint filed April 25 in New York's Supreme Court, Amazon alleges the law violates several aspects of the U.S. Constitution in its "impermissibly vague and overbroad" nature of requiring Amazon, which has no physical presence or employees based in New York, to collect sales taxes.

Amazon also named New York's taxation and finance commissioner, Robert Megna, and New York Gov. David Paterson as defendants. Amazon is asking the court to invalidate the law on the grounds that it is unconstitutional.

Tom Bergin, spokesman for New York Department of Taxation and Finance, declined to comment on the lawsuit. A spokesman for Amazon declined to comment. The suit was earlier reported by Wired magazine.

If it doesn't work, Amazon should stop selling to anyone in New York, at least "for an indefinite period". Might wake some of the complacent sorts up.

[Standing Wolf]

Tom Bergin, spokesman for New York Department of Taxation and Finance, declined to comment on the lawsuit.

What he actually said was: "Gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme, gimme!"

[Gewehr98]

That internet sales taxation thing is not a subject that will go away anytime soon, from what I understand. 

There are already two bills in Congress pending...