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NY argues that Amazon's relationship with NY-based affiliates constitutes a NY-based Amazon marketing force that produces a sufficient nexus with the state to m
by _delirium 14y ago
NY argues that Amazon's relationship with NY-based affiliates constitutes a NY-based Amazon marketing force that produces a sufficient nexus with the state to make them subject to NY law on collecting sales tax. It's currently being litigated [1].
I recall reading [2] that Amazon actually supports the federal legislation though, because they're slowly moving towards having a 50-state presence anyway, as things like grocery delivery and same-day delivery become a bigger part of their strategy.
[1] http://www.reuters.com/article/2013/02/06/us-tax-amazon-court-idUSBRE9151C720130206 http://www.reuters.com/article/2013/02/06/us-tax-amazon-cour...
[2] http://www.slate.com/articles/business/small_business/2012/07/amazon_same_day_delivery_how_the_e_commerce_giant_will_destroy_local_retail_.html http://www.slate.com/articles/business/small_business/2012/0...
- andrewpi 14y agoDidn't Amazon drop affiliates in other states when those states tried to use the affiliate rationale to charge sales tax? Why is NY different?
- _delirium 14y agoThat was their initial "scorched-earth" strategy, but they quickly dropped it. In recent disputes, e.g. with Texas and New York, they haven't terminated affiliates, and have instead opted for a mixture of negotiations and legal battles.