Update on Internet Sales Taxes

Today, the U.S. Supreme Court declined to hear Amazon.com/Overstock.com’s challenge to the NY affiliate nexus law, also known as the Amazon tax. On September 19, the American Legislative Exchange Council filed an amicus curiae brief with the Court based on our long-standing policy of supporting the physical presence rule.


Ironically, the Court announced its decision on Cyber Monday. This is disappointing because it leaves unsettled important questions about federalism at a time when the states and millions of consumers and small online businesses need certainty about the government’s tax powers and taxpayers’ obligations. The longer we wait, the more confusion we will sow.


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