New York State Supreme Court Justice Eileen Bransten tossed out Amazon.com’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 Amazon.com. The company hoped to have the law changed and have the state pay for all legal costs.
New York state appears to be desperate to try and make money. Bling bling!