3 Dec 2013

Internet sales tax appeal rejected by US Supreme Court

8:29 am on 3 December 2013

The US Supreme Court has rejected an appeal to re-evaluate a New York state law that requires internet retailers like Amazon to pay sales tax in the state.

The law forces internet retailers to collect taxes on purchases in New York.

The BBC reports the case could set a precedent in the United States, where uncollected sales tax amounts to an estimated $US23 billion per year.

Amazon argued it should not pay the tax as it does not have a physical presence in the state.

Both Amazon and Overstock.com brought separate cases against the law, which were joined into one ruling.

Neither company has any distribution facilities in New York.

New York state lost an estimated $US1.8 billion in uncollected sales tax in 2012, according to the National Conference on State Legislatures.