Forum Moderators: buckworks
A New York Supreme Court judge has approved the state's new-fangled Amazon Tax.Earlier this year, Amazon.com and Overstock.com sued New York over an ingenious new law that forces the big-name online retailers to collect sales tax if they maintain affiliate networks in the Empire State, and this afternoon, Judge Eileen Bransten dismissed them both.
Bransten handed down her final dispositions in the two cases, which have been watched with a certain amount of trepidation by online retailers because of the precedent it could set for tax collection in states where they do not maintain offices.
"In the end, the Commission-Agreement Provision does not broadly tax any and all Internet sales to New York consumers," she wrote in her ruling. "It requires a substantial nexus between an out-of-state seller and New York through a contract to pay commissions for referrals with a New York resident along with realization of more than $10,000 of revenue from New York sales earned through the arrangement. The neutral statute simply obligates out-of-state sellers to shoulder their fair share of the tax collection burden when using New Yorkers to earn profit from other New Yorkers."
It requires a substantial nexus between an out-of-state seller and New York through a contract to pay commissions for referrals with a New York resident
This could trigger the end of affiate programs.
