Amazon, New York In Tax Spat

Friday, May 2, 2008 by Mistlee

Can't see any images? - !

Internet Financial News May 02, 2008

Subscribe to our RSS feed to stay current with the latest news and updates.
Subscribe to our RSS feed!
Amazon, New York In Tax Spat

Amazon, New York In Tax Spat launched its response to New York's attempt to force it to collect state sales taxes by filing a lawsuit.

The entirely unexpected response by online retailer to the state of New York's decision to treat it as having a local presence happened in New York State Supreme Court in Manhattan. New York deemed Amazon's online affiliates with residences in New York as being the same as having a physical presence in the state.

Such a situation means Amazon has to collect state sales taxes, a potentially lucrative action for New York. Amazon wants no part of such a compulsion and decided to fight back.

The New York Times said New York's move could net it $50 million. Residents are required to pay such taxes under law anyway; it's likely most don't, which led to the legislation making Amazon and similar businesses a tax collector.

Amazon will challenge the Constitutionality of the law on 14th Amendment grounds. Specifically, Amazon wants the court to see the law as a violation of equal protection described by that Amendment, since legislators refer to the law as the 'Amazon Tax'.

Also, Amazon will argue affiliates are not agents of the company, as the new law contends. The Times said Amazon considers affiliates an advertising outlet, for which it pays commissions as part of the usual course of business.

New York won't give up an eight-digit payday without a fight. The case could wrap up quickly if the court agrees with Amazon's 14th Amendment claim, something we expect Amazon to push heavily in its testimony.

Click to Play

Unleashed: Jennifer Laycock
The team behind Search Engine Guide and Small Business Brief organized the first ever Small Business Marketing Unleashed Conference in Houston...

More News

WebVisible Sees Much Local Search Love
The investments made by search companies into local search have been rewarded with extremely satisfied visitors, who become customers converting offline.

Semel Upset By Media Critics
At an "all-hands" meeting at Yahoo, CEO Terry Semel decried the shots being taken at his leadership at the company as coming from critics who are "full of sh*t."

Yahoo Tweaks Bidding Information
Yahoo's Search Marketing will make some changes to the information made available to its clients, as they announce alterations to the Manage Bids pages during...

Latest News

Baidu Earnings Increase Fivefold
Big Guys Put Squeeze On Search Ads
Yahoo Plunks Down Cash For MyBlogLog
DoubleClick Dumps Abacus At A Loss
AOL & Yahoo: No Merger, No Cry

Germans Bail From Quaero Partnership
Fraud Could Rain On Holiday Parade
Job Sites Poised For 2007 Boom
Dreamweaver 8 Advises You On CSS
Yahoo, Page Views, And The Next Metric

Financial Blog Talk

Get $2000 Back on Your First Google TV Ad* Get $2000 Back on Your First Google...
I feel like Im trying to sell something, but its true. Google is running a promotion to encourage people to try Google TV Ads. Details below...

Microsoft Sets Aside $1.5 Billion to... Microsoft Sets Aside $1.5 Billion to...
...Retain Yahoo Employees. And so the Microhoo saga continues. The Wall Street Journal reports that Microsoft plans to allocate $1.5 billion...

Google to Pay Yahoo $1 Billion per Year?!? Google to Pay Yahoo $1 Billion per Year?!?
According to this article in MediaPost, Yahoo may begin serving Google AdWords ads on a broader scale than their joint recent test...

Yahoo Juggles Its Options With...
The board of directors faces a ticking clock at Yahoo, as a week has passed since Microsoft CEO Steve Ballmer promised Yahoo...

Feds Flatten 3Com Purchase By Bain...
National security concerns looked like an insurmountable obstacle, causing Bain Capital and China's Huawei Technologies...

Browser Market Seeing Netscape Depart
Microsoft turned Internet browsing from an application license driven economy to one supported by advertising and deals with...

» See More Articles...

Unsubscribe from InternetFinancialNews.
To unsubscribe from InternetFinancialNews or any other iEntry publication, simply send an email request to: