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NY Sued Over New Internet Sales Tax

Amazon.com has sued the state of New York over a controversial new law regarding the taxing of certain Internet sales, arguing that the new law violates the state and federal constitutions [Amazon.com v. New York State Department of Taxation and Finance, N.Y. Sup. Ct., No. 601247/08, 4/25/08]. The suit, filed in New York State Supreme Court in Manhattan, alleges that the new law violates the Commerce Clause of the U.S. Constitution because it imposes tax collection obligations on out-of-state entities that have no substantial nexus with New York.

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