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Amazon, Overstock Lose Challenge to N.Y. Web Sales Tax

In what will no doubt go down as battles for the books, Amazon.com and Overstock.com have officially lost their separate cases against New York State, in which they argued that New York’s Internet sales tax law was unconstitutional. The companies, based in Seattle and Salt Lake City respectively, took New York State’s Depart of Taxation and Finance to court in 2008. This was done in the hopes that they might overturn a law that calls for retailers to pay taxes if they promote business in New York through a link to a website. The final ruling has been made, with the court citing that these two online retail giants “established an in-state sales force” via arrangements with other companies who were paid commission for sharing links on their websites, pointing users in the direction of Amazon.com or Overstock.com.

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