News
State Web Law has Chilling Effect for Online Retailers
by Ilya Marritz
NEW YORK, NY May 15, 2008 —A new state law for online retailers is already having a chilling effect on some business relationships. It requires out of state Web retailers to collect sales tax on all purchases made by New Yorkers, if any of its partner sites are based in New York.
Last month, Amazon.com filed suit to block the law, saying it's unconstitutional.
Now Utah-based Overstock.com, which sells everything from power tools to wedding rings, says it's canceling partnerships with New York-based Web sites, so its customers in New York won't have to pay tax.
The state estimates the law will bring in about $50 million annually.
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