Quote:
Originally Posted by Tony_P
No longer correct as of 2008
"In 1992, the U.S. Supreme Court ruled that merchants cannot be required to collect sales tax from a customer in another state unless the retailer has a “physical presence” in the customer’s state (defined generally as a store, office or warehouse)...
Flash forward to last year [2008]. New York governor David Patterson signed legislation that would require out-of-state internet merchants who have on-line affiliates in the state to collect sales tax from customers there. Estimated to net an additional $50 million a year in added revenue, similar legislation has been considered in several other states. Amazon then filed a lawsuit against New York on the grounds that an affiliate does not constitute a physical presence in a state and thus the New York law would violate the Supreme Court’s 1992 decision." - Source: E-Commerce News
NY will lose the case when it gets to the Supremes