Well that didn’t take long! Amazon is fighting back against the state of New York over their “Amazon Tax Bill” which now forces retailers to charge sales tax to customers who live in the state of New York. It would bring in a reported $50 million dollars to the state, but Amazon isn’t so willing to just let this happen without a second look at it.
According to The New York Times, Amazon is suing the state of New York to void the new sales tax rules. Remember, New York is saying Amazon has a presence in the state because of all their affiliates which is why they say Amazon should be required to collect taxes from buyers. Amazon is saying that this new bill may not be constitutional, and so they’re fighting it.
So do they have a chance at winning this battle? Well, Amazon does have some good arguments. One of their arguments is that their affiliates aren’t actually agents for the company, rather they’re just an advertising method. Another argument is that the bill is “overly broad and vague,” and that it violates the equal protection clause of the constitution. I can see how they can argue that one especially, because the bill is even named after Amazon.
This is an extremely important battle for Amazon and for the rest of Internet retailers because other states could easily follow in the footsteps of New York and try to do the same. That could mean a lot of extra work for online retailers who will need to spend the time making sure they’re following all of the tax codes.
Thanks for the tip Max!