facebook
twitter
rss
account
search
search
 

Amazon.com calls tax law 'unconstitutional'

June 30, 2009 at 3:14 PM   |   Comments

SEATTLE, June 30 (UPI) -- Internet retail giant Amazon.com Inc. said it severed ties with third-party advertisers in Rhode Island to sidestep the state's new sales tax policy.

Amazon had already cut ties with advertisers in North Carolina, which has passed a similar law, the Los Angeles Times reported Tuesday.

Amazon allows thousands of Web site owners to earn fees by posting ads for Amazon. Although state sales taxes are generally applied to companies within the state, the new laws allow the states to tax products sold to their state's residents if the Internet retailer has third-party agreements with in-state businesses.

Amazon, for example, has its headquarters in Seattle, so it charges state tax for customers who live in the state of Washington.

Amazon spokeswoman Patty Smith said the new law "places an unconstitutional burden on interstate commerce for a state to require a seller without a physical presence in that state to collect sales tax."

The company is also lobbying to prevent California from adopting a similar law.

"If this new tax collection scheme were enacted, Amazon would have little choice but to end its advertising relationships with California-based participants in the Amazon Associates Program, " the company said in a letter to Gov. Arnold Schwarzenegger.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
New submarine set for commissioning New submarine set for commissioning
2
Navy tests MQ-8C unmanned helos Navy tests MQ-8C unmanned helos
3
Europe must drop the euro, Germany abandon mercantilism Europe must drop the euro, Germany abandon mercantilism
4
Harris selected for geospatial data products Harris selected for geospatial data products
5
Throwback Thursday: Facebook launches old-school 'Rooms' app Throwback Thursday: Facebook launches old-school 'Rooms' app
Trending News
Around the Web
x
Feedback