September 16, 2009
Tax Analysts Highlight Tax Foundation Amicus Brief in NY “Amazon Tax” Case
"Tax Foundation Calls for Overturning New York Court's 'Amazon' Decision"
By John Buhl
The New York State Supreme Court of New York County set "unconstitutionally expansive" standards in upholding New York's controversial "Amazon" law, according to a Tax Foundation amicus brief arguing for a reversal of the decision.
The group submitted the amicus brief on September 9 to the New York State Supreme Court, Appellate Division, where Amazon.com and Overstock.com are appealing the lower court's ruling.
New York in April 2008 adopted nexus provisions that require out-of-state online vendors to collect the state sales tax if the company does at least $10,000 of annual business through in-state affiliates, prompting Amazon.com and Overstock.com to file suit challenging the constitutionality of the law. ...
"In ruling that Amazon.com must collect sales taxes, the New York State Supreme Court has established an unconstitutionally expansive standard for determining whether a business has a 'substantial nexus' in a state -- one that goes beyond any standing precedent," Joseph Henchman, tax counsel and director of state projects for the foundation, said in a September 15 press release. "Widespread adoption of such vague and expansive nexus standards undermines legal certainty, interstate commerce, and economic growth."
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