Supreme Court Rejects Amazon's Case in Sales Tax FightE-commerce giants Amazon and Overstock were hoping to overturn a law requiring them to charge sales tax in New York state.

ByLauren Covello

Opinions expressed by Entrepreneur contributors are their own.

digitaltrends.com

It's an interesting day when Amazon'sefforts to build delivery droneslook more promising than its efforts to fight state tax laws.

The U.S. Supreme Court today refused to hear appeals by Amazon.com and Overstock.com against a New York state law that requires them to charge sales tax despite not the companies not having a physical presence in the state. Thee-commercegiants were looking to overturn a ruling made by a lower court that upheld the law in March.

Generally, web retailers do not collect sales tax in states where they lack warehouses or other physical operations. But in New York and several other states, a retailer is considered to have a physical presence if it uses "in-state affiliates," meaning people or businesses that refer customers to the site and earn sales commission.

Related:Not Science Fiction: Amazon Is Working on a Drone-Powered Delivery System

In its petition to the Supreme Court filed in August, Amazon claimed that upholding the New York state law would "significantly and unduly burden interstate commerce," and would serve as a "road map for other jurisdictions to inflict similar burdens on interstate commerce."

的决定可能吸引更多国家执行sim卡ilar laws as they seek ways to generate more revenue. States lost an estimated $23 billion in 2012 as a result of not being able to collect sales tax revenue on remote sales, according to a statement by the National Conference of State Legislatures in September.

Related:Self-Made Billionaire Michael Rubin: E-Commerce Is Rapidly Changing

Wavy Line
Lauren Covello

Former Managing Editor

Lauren Covello is the former managing editor of Entrepreneur.com.

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