One of the budget-related changes voted in last week by New York State’s politicians included a new “Amazon tax”:
“Another $50 million will come from requiring online retailers like Amazon that do not have a physical presence in New York to collect sales taxes on purchases made by New Yorkers and remit them to the state.
New York’s argument, based on a reading of the 1992 Quill vs. North Dakota U.S. Supreme Court ruling, is that because Amazon makes sales through affiliates who live in the state, it can be considered to have a physical presence there—which means the new law wouldn’t apply to retailers who don’t use affiliate programs.
