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Court makes major ruling on NY web sales

Court makes major ruling on NY web sales

The Supreme Court has refused to consider throwing out New York State’s taxes on Internet purchases on websites like Amazon.com, a move that could change the way Internet commerce works.

The high court on Monday refused to hear appeals from Amazon.com LLC and Overstock.com Inc., in their fights against a state law that forces them to remit sales tax the same way in-state businesses do.

Web retailers generally have not had to charge sales taxes in states where they lack a store or some other physical presence. But New York and other states say that a retailer has a physical presence when it uses affiliates — people and businesses that refer customers to the retailer’s website and collect a commission on sales.

Amazon and Overstock both use affiliate programs.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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