NEW YORK, NY January 13, 2009 —A New York state court has affirmed the so-called "Amazon tax" on purchases made over the internet. WNYC's Ilya Marritz has more.

REPORTER: New York lawmakers broke new legal ground last year when they required out of state web retailers to collect New York sales tax if the retailer has so-called "affiliates" in the state. An affiliate could be a New York-based web site that directs business to the retailer via banner ads.

The nation's biggest web retailer, Seattle-based Amazon, contested the law, but now the state supreme court has allowed it to stand.

Amazon isn't saying yet whether it will contest that ruling.

It's estimated the so-called "Amazon tax" will yield $50 million a year in new revenue.

For WNYC, I'm Ilya Marritz.