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Friday, June 19, 2009
Law - "Amazon Threatens Cuts Over State Taxes "
Geoffrey A. Fowler reports today in the Wall Street Journal - here are some quotes:
Cash-strapped states trying to force retailers to collect taxes on online sales are spurring efforts by Internet retailer Amazon.com Inc. to avoid being swept under the proposed laws.North Carolina is close to passing a law that would force online retailers to collect the state's 4.5% sales tax from marketing affiliates, people who get a sales commission from online customer referrals. Amazon, of Seattle, Wash., told its North Carolina marketing affiliates on Wednesday that it would stop doing business with them by July 1 if the law takes effect. Cutting the affiliates would enable Amazon to avoid collecting tax on sales in the state.
"We believe the way North Carolina is going about collecting the sales tax is unconstitutional," said Amazon spokeswoman Patty Smith. "It isn't appropriate for us to have to comply with an unconstitutional burden." * * *
New York passed an Internet sales tax law last year, which Amazon challenged in court but lost. While the retailer appeals that ruling, it is collecting taxes from New York customers. States including Maryland, Minnesota, and Tennessee have considered then scrapped similar proposals.
Posted by Marcia Oddi on June 19, 2009 11:56 AM
Posted to General Law Related