Amazon Fights back Against New York Tax
May 2, 2008Amazon, feeling singled out by what New York state officials have dubbed the Amazon Tax has decided to sue the state. According to the New York Times, the state changed the law regarding who has to collect taxes and instead of requiring only retailers with a physical location in the state to pay, now -- any company with an affiliate in New York state has to collect them as well.
Amazon is saying their affiliates are not really agents but sites on which Amazon places ads.
The ecommerce giant further states that the law is overly broad and vague and finally that it is targeted at a single company -- referring to state officials calling it the Amazon Tax.
I first reported on this tax a few weeks back and it will be very interesting to see how this plays out.
If New York wins, it will benefit many retailers in the state and other states will likely follow suit. None of this of course would be good for any online retailer as one of their main advantages will be taken away.
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