Amazon Sues NY Over Internet Sales Tax Collection

Story Published: May 3, 2008 at 10:29 AM EDT

Story Updated: May 3, 2008 at 10:29 AM EDT

By WKBW News

ALBANY, N.Y. (AP) - Amazon.com is suing over a new law requiring
out-of-state companies that sell online to collect sales tax from
shoppers in New York.

Amazon spokeswoman Patricia Smith says the lawsuit claims the
law is unconstitutional.

State officials estimate the new law will help them collect
about $50 million dollars a year by requiring online retailers to
collect state sales tax.

New Yorkers are currently on an honor system to report their
online purchases and pay the tax when they file state tax returns.

The lawsuit alleges that the law unfairly targets Amazon, is
overly broad and vague, and is unconstitutional because it forces
out-of-state entities to collect tax for New York.

Tom Bergin, a spokesman for the state Department of Taxation and
Finance, says the law is a necessary update for modern times.

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