Amazon Sues to Keep Web Sales Cheap

As we predicted when we first reported New York’s “Amazon Tax”, the internet retailer has sued to have the New York law declared unconstitutional. As you’ll recall, New York wants Amazon to collect and remit sales taxes on things they sell to New Yorkers, rather than depending on people to report and pay their own use tax. Amazon’s complaint (available via Courthouse News Service), prays for relief under the Commerce Clause, Due Process Clause, and Equal Protection Clause of the Constitution, and asks that the law be struck down and Amazon awarded attorney’s costs.

New York says that Amazon ads carried on web sites run by New Yorkers are enough to establish a business nexus in New York; Amazon says nonsense, that’s just advertising that is “not significantly associated with Amazon’s ability to generate revenue from selling products to customers in New York.” Web workers who sell goods over the internet should be happy to have Amazon fighting this battle, as should any New Yorker who is perhaps a bit lax about their use tax obligations.

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