N.Y. Appeals Court Revives Amazon's Sales Tax Suit

A New York appeals court has reinstated a lawsuit filed by Amazon and Overstock against the state. The online retailers claim that the state forcing the companies to collect sales tax is unconstitutional. Grab the popcorn, this should be a good one to watch.

A New York appeals court ruled 5-0 that "the dismissal of the entire complaint was premature" and that the lawsuit should continue. The legal actions, filed a few weeks apart in early 2008, claimed that the state law was "invalid, illegal, and unconstitutional." Amazon has, however, been collecting sales taxes on shipments to Empire State customers while the case is under way.

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