– AMAZON TAXES NEW YORK: Amazon.com said it would collect sales taxes on items shipped to destinations in New York State, starting June 1, as required by a new law enacted in the Empire State. The law calls for “out-of-state sellers to collect and remit sales taxes based on advertising,” Amazon stated. In a message to customers posted on its Web site, Amazon told visitors it “has filed a lawsuit challenging the constitutionality of this provision.” According to The New Rules Project, the Web site of the Institute for Local Self-Reliance, New York’s new tax measure “states that any online retailer that generates more than $10,000 in sales via in-state sales affiliates must collect New York sales tax.” Amazon, among others, has sales affiliates nationwide that link to Amazon.com and are paid commission on any sales generated from their referrals, The New Rules Project noted. The change made by Amazon Sunday extends to five the number of states in which it charges sales tax for deliveries of goods: Kansas, Kentucky, North Dakota and Washington, as well as New York.
This story first appeared in the June 2, 2008 issue of WWD. Subscribe Today.