The New York Appellate Division finally ruled on Amazon.com’s appeal over the lower court’s dismissal of its constitutional challenge to the Amazon Tax. The lower court had held that “the neutral statute simply obligates out-of-state sellers to shoulder their fair share of the tax collection burden when using New Yorkers to earn profit from other New Yorkers.” The appellate court affirmed the lower court decision as to whether the law was unconstitutional on its face but reinstated the Amazon.com claim to the extent the parties claimed the law as applied nonetheless violated the Commerce and Due Process Clauses.
In Colorado, while the DMA has filed a lawsuit challenging that law, it may be moot as a shift in power in the legislature following the 2010 elections has made repeal of the law a top priority for 2011. A report by the Federal Reserve Bank has projected that the state fiscal crisis will continue into 2012, which means 2011 could be another busy year in the Amazon Wars.
|More Info: Amazon Decision; DMA Lawsuit, Will Lawmakers Do About-Face On Much-Debated ‘Amazon’ Tax?, State Bill Colorado|