Amazon v. New York: Challenges State Over Taxes

The online retail giant Amazon is preparing to mount a new challenge to a New York State law that requires the company to collect sales taxes.

The Financial Times reports Amazon has hired litigator Ted Olson, and petitioned the US Supreme Court to consider whether internet retailers should be exempt from state taxes.

A New York law enacted in 2008 requires out-of-state internet retailers to collect sales taxes if they have so-called "affiliates" within the state. An affiliate can be another website that guides consumers to websites like Amazon to make purchases.

Amazon did not immediately respond to a request for comment.

In March, New York's highest court upheld the state's ability to tax online purchases.