Internet Sales Tax – States Take on Amazon for Online Sales
Sales tax on online retail sales has been a confusing area of the law since the earliest forays into internet sales. Recent attempts by the states to aggressively interpret the meaning of a business “nexus” with the state (which is the basis of a state’s claim to sales tax jurisdiction) have been fueled both by the maturity of the internet retail market and by the state budgetary crises of this and recent years.
In 2008, New York State enacted legislation which may still be the broadest attempt yet to collect sales taxes from out-of-state vendors, basing its legal argument on the networking, linking and affiliate relationships common to many online vendors and particularly, to Amazon.com.
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