Back in the Big Apple again, and just in time to find a story (which seems to be rather old) debating the legality of a law that requires out of state online retailers to charge New York State sales tax to folks residing within the state. New York state’s highest court ruled that “out-of-state online retailers must charge state tax on New York State customers.” according to the CNET article.
The case seem old because Amazon and Overstock already charges sales tax for items shipped to the state (I should know!). Furthermore the Supreme Court has previously found, in the case of Quill vs North Dakota, it unconstitutional for a state to impose its sales tax on businesses residing outside its boarders.
What the Court did in Quill was to kick the issue back to Congress. It is interesting to note that the Senate recently voted 75-24 on an amendment that would allow states to collect sales tax on so called “remote sales”.
So it looks as if the online retailers will be before the Supreme Court once again raising this issue. Its is interesting to note not all jurisdictions have been so successful. Last year in Cook County Illinois, the court decided against a law requiring so called “remote sales tax”.