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Amazon suing NY state over sales tax law
Reuters ^ | May 5, 2008 | Reporting by Alexandria Sage; Editing by Braden Reddall

Posted on 05/05/2008 3:07:30 PM PDT by PROCON

LOS ANGELES (Reuters) - Amazon.com Inc has sued the state of New York, challenging a new statute requiring Internet retailers based elsewhere to collect New York sales taxes.

Amazon, the world's largest Internet retailer, said in a complaint filed in the Supreme Court of the State of New York on April 25 that the new law, passed by the state legislature in early April, was unconstitutional, vague and overly broad.

Through its "Associates Program," the company pays unaffiliated Web site operators around the country a commission if they advertise Amazon on their sites. Those ads often allow consumers to click through from the advertiser's Web site to Amazon.com.

(Excerpt) Read more at reuters.com ...


TOPICS: News/Current Events; US: New York
KEYWORDS: amazon; newyork; ny; taxes

1 posted on 05/05/2008 3:07:33 PM PDT by PROCON
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To: PROCON

HAHA!


2 posted on 05/05/2008 3:13:59 PM PDT by struggle ((The struggle continues))
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To: PROCON

Go Amazon Go!!!


3 posted on 05/05/2008 3:15:52 PM PDT by Drago
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To: PROCON
New York can't collect a sales tax from a retailer that has no physical presence in the state. They can't do it.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

4 posted on 05/05/2008 3:16:21 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: PROCON

Who the heck introduced this?


5 posted on 05/05/2008 3:17:00 PM PDT by wastedyears (The US Military is what goes Bump in the night.)
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To: PROCON
I often buy books and things from Amazon.

I don't do it to avoid taxes at all. In fact I pretty much forgot about that legislation from a while back.

Amazon better fight this and win, because if my state (Assachusetts) does this and wins, I'll drive up to New Hampshire to make future purchases just on general principle.

6 posted on 05/05/2008 3:21:29 PM PDT by Radix (Q. What do you call a row of rabbits walking backwards? A. A receding hare line.)
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To: PROCON

Seems to me that Amazon should just refuse to ship into New York until the law is repealed. Let the citizens decide if it is important...


7 posted on 05/05/2008 3:23:50 PM PDT by Onelifetogive (Simple-minded conservative...)
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To: goldstategop

When Boy Scouts Troop 23490235 in Melville NY signs up as a Amazon Associate in an attempt to raise funds for Jamboree, NY State is now claiming the living room of the Den master is now a legal nexus for sales tax collection purposes under NY State law.

Which is a legitimate claim. ON THE ASSOCIATE. Amazon is just a dropship wholesaler, the Associate is the retailer responsible for tax collection and remittance.

What is not legitimate is NY State’s insistence that Amazon is the retailer on all goods sold to all residents of NY State, no matter if through a NY State based nexus associate, or not.

It’s the largest leap of logic in the click vs brick sales tax wars so far.


8 posted on 05/05/2008 3:26:00 PM PDT by JerseyHighlander
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To: goldstategop; All

California does it too. Ask any manufactuer of equipment not based in California and has no physical presence in California.


9 posted on 05/05/2008 3:30:09 PM PDT by PeaceBeWithYou (De Oppresso Liber! (50 million and counting in Afganistan and Iraq))
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To: PeaceBeWithYou
As a practical matter, online taxes would have to be collected by retailers. No one is going to submit them on their own purchases.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

10 posted on 05/05/2008 3:32:14 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: PeaceBeWithYou

Neu Yawk and Kalifornia, why am I not surprised that the two states with the biggest financial problems would try to pull a stunt like this. I actually do not feel bad for any of my relatives that are still living there and will do so until the day they die.


11 posted on 05/05/2008 3:35:45 PM PDT by JEC ((Pray for ALL our troops))
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To: goldstategop

No.

Here’s how they do it.Aa dealer or distributor not in Califonia, makes a sale that is shipped from the factory, also not in California, but has other dealers in California, (still no physical presence by manufactuer or the dealer making the sale). California steps in and says to the factory, you owe us taxes on that sale, or we will injuction you and drag you into our court until you do.

In the end, it only hurts California, because lots of manufactures tell them to GTH.


12 posted on 05/05/2008 3:46:17 PM PDT by PeaceBeWithYou (De Oppresso Liber! (50 million and counting in Afganistan and Iraq))
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To: PROCON

Amazon already collects sales taxes for Kansas residents.


13 posted on 05/05/2008 3:51:06 PM PDT by Crazieman (Vote Juan McAmnesty in 2008! Because freedom abroad is more important than freedom at home!)
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To: Crazieman

They have a physical presence in Kansas.


14 posted on 05/05/2008 3:55:05 PM PDT by PeaceBeWithYou (De Oppresso Liber! (50 million and counting in Afganistan and Iraq))
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To: PROCON

bump


15 posted on 05/05/2008 4:19:45 PM PDT by lowbridge ("I can't wait to see what he stands for." - Susan Sarandon on her support of Barack Obama)
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To: lowbridge

BUMP!


16 posted on 05/05/2008 4:52:00 PM PDT by Publius6961 (You're Government, it's not your money, and you never have to show a profit.)
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To: JerseyHighlander

Actually it is more of a referral program. Sales take place through Amazon, taxes collected through Amazon, Shipping through Amazon, etc. As an “Associate” you are just referring business to Amazon through your website or activities. An associate needs no tax id or retail sales tax credentials, so you can collect sales tax.


17 posted on 05/06/2008 5:38:50 AM PDT by Andrewksu
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To: Andrewksu

[EDIT] can’t collect sales tax


18 posted on 05/06/2008 5:55:24 AM PDT by Andrewksu
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To: Andrewksu

Right, I stand corrected. So if it costs Amazon 7% more to do so, they’ll just end the referral program, or switch qualified Associates to a new drop shipping scheme to nip NY State in the bud if Amazon loses this lawsuit.


19 posted on 05/06/2008 11:13:23 AM PDT by JerseyHighlander
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