by Mike Masnick
Mon, May 12th 2008 3:22pm
Following New York's decision to change its laws to force Amazon.com to collect sales tax for New York-related transactions, other states are apparently going back and reevaluating Amazon and taxes. Texas, for example, has been alerted to the fact that Amazon probably should be paying sales tax in the state. This is different than the situation in New York. The rule has always been that, if the company has a "physical presence" in the state, it is required to collect and pay sales tax. The question in New York was what counted as a physical presence. Amazon doesn't have offices or a distribution center in New York, but New York was trying to claim that all its Amazon affiliates in New York represent a physical presence. In Texas, however, Amazon actually does have a physical presence in the form of a distribution center. It's just that the state of Texas didn't recognize that until someone from a Dallas newspaper pointed it out. So even if Amazon is successful in fighting the law in New York, it looks like the renewed interest in forcing online retailers to collect and pay sales tax is catching up to Amazon in other ways.
If you liked this post, you may also be interested in...
- While Better Than Expected, New FAA Drone Rules Would Still Kill Some Promising Business Models
- Actress Seeking $1 Million From IMDb For Publishing Her Real Age Was Pulling In Less Than $2000 A Year
- Police Department Refuses To Release Use Of Force Policies Because 'Criminals Might Gain An Advantage'
- That Study In Every Paper Claiming Title II Will Result In $15 Billion In New Taxes? Yeah, That's Total Bunk
- Senator Ron Wyden Calls 'Baloney' On Claim That Title II Will Increase Taxes On Your Internet Bill: 'I Wrote The Law'