Court: Amazon Must Collect Tax from New York Residents

AmazonThe U.S. Supreme Court stayed out of the multibillion-dollar fight over Internet sales taxes, leaving intact a New York law that forces Amazon to collect money from customers in that state. The justices, without comment on Monday, rejected appeals by Amazon and another Internet retailer, Overstock.com, which said New York is violating the Constitution by demanding tax collection from companies that don’t have facilities in the state. New York’s top court upheld the state law. States lose an estimated $23 billion a year in uncollected sales taxes from web retailers. Although Amazon has agreed to collect taxes in some states as it sets up distribution centers around the country, it has resisted efforts by others to impose sales taxes unilaterally. New York’s measure is among a handful that have been dubbed “Amazon laws” because they affect only the largest online sellers.

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