Friday, June 06, 2008

New York Internet Sales Tax Setting A Trend?

A highly controversial New York law recently went into effect. Under the new law (Chapter 57, Laws 2008, Part KK-1), New York becomes the first state to require internet sales companies to collect sales tax. Will this new law set a trend for other states? According to this National Law Journal article (subscription), legislators in Colorado, Florida, Illinois, Kansas and Minnesota are also considering passing similar laws. For a fuller explanation of the law, see this technical bulletin. A number of retailers--Amazon.com and Overstock.com--have already filed suit. See Overstock's Complaint here.

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