Amazon Loses New York Tax Lawsuit

January 16, 2009 at 12:45 am Leave a comment

Amazon.com’s challenge of the constitutionality of a New York tax law – which would require Amazon.com and other out-of-state online companies to collect tax from shoppers who live within the state of New York – has ended in defeat.

Amazon’s lawsuit argued that the law was unconstitutional, that it violated the commerce clause by obligating out-of-state entities to collect taxes. A New York Supreme Court justice dismissed the lawsuit, saying there was no basis for legal action.

Officials say that nearly $50 million will be gained over the next two years from the new online tax. The chief operating officer of the American Booksellers Association welcomed the change, saying it was time government stopped subsidizing Amazon.

More story: Amazon Loses New York Tax Lawsuit.

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