Venable partner John F. Cooney was quoted throughout a May 7, 2010 WebCPA article on a closely-watched internet sales tax case currently on appeal in New York.
The case, Amazon.com v New York State Department of Taxation and Finance, is a challenge to a New York law that requires online retailers, like Amazon, to collect sales tax if they have marketing affiliates in the state. States across the nation are following the case, and may enact their own laws if this case is decided in favor of New York.
"Rhode Island and North Carolina have adopted similar laws, while at least six other states - including California, Illinois, Connecticut and Virginia - are considering their own versions of a tax on online sales," said Cooney. "And Colorado has passed a variant which requires the company that runs the Web site to collect the names of people in Colorado who make purchases."
Cooney predicted that no matter how the court decides, the verdict will likely be appealed.
"It might eventually go before the Supreme Court, since it involves the application of one of the Court's prior decisions to a new and fast-growing technology," said Cooney. "Other states are watching. If New York is upheld, they will pass their own versions."
The case, Amazon.com v New York State Department of Taxation and Finance, is a challenge to a New York law that requires online retailers, like Amazon, to collect sales tax if they have marketing affiliates in the state. States across the nation are following the case, and may enact their own laws if this case is decided in favor of New York.
"Rhode Island and North Carolina have adopted similar laws, while at least six other states - including California, Illinois, Connecticut and Virginia - are considering their own versions of a tax on online sales," said Cooney. "And Colorado has passed a variant which requires the company that runs the Web site to collect the names of people in Colorado who make purchases."
Cooney predicted that no matter how the court decides, the verdict will likely be appealed.
"It might eventually go before the Supreme Court, since it involves the application of one of the Court's prior decisions to a new and fast-growing technology," said Cooney. "Other states are watching. If New York is upheld, they will pass their own versions."