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The State of New York is defending it’s right to enforce state sales tax on online purchases from Amazon.com and Overstock.com. The companies are arguing that a 2008 NY Law that requires companies with affiliates in NY to charge sales tax is not constitutional because of a 1992 Supreme Court decision saying that retailers without a “nexus” of operation in a state are not required to collect sales tax..
The New York Court of Appeals will make it’s decision by June, possibly affecting millions of dollars in taxes for the state. Although lower courts have sided with the state, some members of a five-justice panel are gaining interest in the argument of the companies.
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