Top court OKs tax on online sellers like Amazon

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ALBANY, N.Y. (AP) – New York's highest court has
ruled the state can collect sales tax from out-of-state retailers,
rejecting claims by Amazon.com and Overstock.com that the tax violates
the U.S. Constitution's Commerce Clause.

The Court of Appeals says in a 4-1 ruling that the
2008 amendment meets the U.S. Supreme Court test that the sellers have
“a substantial nexus” with the taxing state.

Taxes apply when the online retailers generate at
least $10,000 in annual sales to New Yorkers from in-state websites that
earn commissions by bringing in potential customers.

Amazon.com, with corporate offices in Washington
state, has an “Associates Program” where others put such links on their
websites.

Overstock.com, based in Utah, suspended its similar “Affiliates” program in New York after the state statute was enacted.

Calls to their lawyers were not immediately returned.

Copyright 2013 The
Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten or redistributed.

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