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Amazon loses a New York court case that has been ongoing for around nine months

New York State Supreme Court Justice Eileen Bransten tossed out's lawsuit challenging the state of New York's right to collect tax from out of state transactions through the retailer.  Amazon reportedly failed to state a proper claim and "there is no basis upon which Amazon can prevail," according to Judge Bransten.

Amazon first filed a complaint in April, claiming the law was unconstitutional and too broad and vague.

The law comes into effect if a company doesn't have an office in New York, but has one or more workers who serve as online agents in New York.  For example, New York residents didn't need to pay taxes on products sold because Amazon doesn't have official operations there -- Washington state shoppers, however, must pay taxes, as the state has a headquarters and warehouses there.

State officials widened how "presence" could be described, as Amazon said advertisers aren't classified as official agents for  The company hoped to have the law changed and have the state pay for all legal costs.

The popular online retailer also has an Associates Program that helps unaffiliated web site operators get paid when advertising Amazon on their own web sites.  New York law indicates this eventually ends up being solicitation of business while operating in New York.

New York state officials said the new "Amazon tax" closes a "tax loophole" that should have never existed in the first place.  Furthermore, the judge said the New York law was "carefully crafted" and didn't offer a blanket tax on all Internet sales, and didn't unfairly target Amazon.

Even though the lawsuit has been thrown out by lawmakers, Amazon can still appeal the decision.

Amazon spokespeople said the new law unfairly targets Amazon, and the state could generate as much as $50 million through 2011 from the tax.  Taxing goods sold both in-state and shipped in could offer the state a new revenue stream to make up for the state's monetary struggles.

However, booksellers in the state are happy to see Amazon finally get taxed.

"The state of New York was subsidizing sales on Amazon to the degree of 8 percent," American Booksellers Association Oren Teicher chief operating officer told the Associated Press.  "That was unfair.  The government ought not ever be in business of picking favorites among competing businesses."

New York recently unveiled a new entertainment tax that would tax all songs through Apple iTunes, as the state's government faces a massive $15.4 billion deficit. 

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NYC .... You are red we must tax you.....
By phxfreddy on 1/14/2009 11:12:13 PM , Rating: 1 are white we must tax you are blue we must tax you

You see its all the same .... legalized theft in the name of the state. Any New York State is the worst in the nation for this.

I suppose its all in the name of the children right?

How sad. Our liberty slowly corroded by our collective excuse making for coercing our fellow man into doing what we think is best at the time.

RE: NYC .... You are red we must tax you.....
By stilltrying on 1/14/2009 11:33:00 PM , Rating: 1
Yep the state must rob Peter to pay Paul and then pull their commission from the transaction to manage it. Legalized plunder aint it great. A protected mafia.

And dont start with the BS. I pay for gas and gas tax to pay for the roads. This is just to steal from one to give to another.

By chick0n on 1/15/2009 8:30:58 AM , Rating: 1
I live in NYC and I hate this place more than ever.

Gas tax for roadS? kiss my ass, Ever since bloomberg came in The road has never been shittier, and look at the way he fuxked Manhattan's downtown, I gotta say I might move out of NY soon. I know his intentions, he is trying to drive poor people out of NYC, too bad I ain't poor Im way above middle class, but I just dont like the way he deal with things. Fuxk this shit.

By Fronzbot on 1/15/2009 9:36:55 AM , Rating: 2
I suppose its all in the name of the children right?

Yep all in the name of our children!
Oh, wait, what's that? Patterson wants to cut educational funding?

No worries, it's for our. . .children's. . .future?

*slams head into keyboard*

"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot

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