Things are not looking good for Amazon and other online retailers who have been avoiding collecting sales taxes from customers, and for customers who have avoided paying them.
A fairly new New York state tax law–dubbed the “Amazon Tax”–has been given the green light as a judge dismissed two lawsuits alleging that the law is unconstitutional.
The judge said the law isn’t unfairly targeted at certain retailers, and that online retailers who make a decent chunk of money off of New York residents should help shoulder the burden of tax collection.
It all started when New York Governor David Paterson signed a new state budget in early 2008 that would hold online retailers responsible for collecting state sales tax from residents of New York if any New York-based website earns referrals from that retailer.
Photo by enimal.