Amazon sues New York over online taxBy Justin Mann
In a world driven by mass manufacturing, mass shipping and low prices, a marginal few dollars can make the difference between a sale and a cancellation, even more so in the online world. Because of those reasons Amazon has opted to take New York State to court, suing them over a new law that will force the company to levy taxes on items shipped to New York residents even though Amazon Headquarters are in Seattle.
The law, intended to provide local funding for New York, has earned a lot of ire from many. Amazon in particular is taking issue with the State trying to enforce collection on the side of the retailer. Furthermore, the law could be interpreted so that Amazon would have to collect taxes on its thousands of affiliate partners, some of which may keep a NY address but are not really based on that location.
Amazon claims the law is too broad, too vague and is too directed at online retailers. The outcome of this case could affect many online retailers, not just Amazon.