Amazon and Overstock Lose Challenge to Online Sales Tax

Amazon and Overstock.com lost a challenge to New York’s Internet sales tax law as the state’s highest court rejected their arguments that it was unconstitutional.

The companies argued that the law violated the Commerce Clause of the U.S. Constitution by subjecting online retailers without a physical presence in the state to sales and compensating use taxes. It violated the Due Process Clause by “creating an irrational, irrebuttable presumption of solicitation of business within the state,” they said.