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NY Judge Dismisses Amazon.coms Challenge to Web Sales Tax Statute
Amazon.com’s challenge to a New York state tax statute requiring online retailers to collect state sales tax on purchases by New York residents has recently been dismissed by a New York Supreme Court Justice. The claim alleged that the statute violated the Commerce Clause of the U.S. Constitution and the Due Process and Equal Protection Clauses of both the state and federal constitutions.
The Judge ruled that Amazon.com was unsuccessful in demonstrating the unconstitutionality of the statute, as the statute contained a requirement that online retailers do a substantial amount of business in New York before they are forced to collect and remit the sales tax. Specifically, transactions by online retailers will be subject to state sales tax if companies solicit annual sales in excess of $10,000.00 from New York residents.
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