SEATTLE, WA – Will North Carolina residents be faced with paying back sales taxes on everything they may have bought from online retailer Amazon since 2003? In a court case with national implications, the ACLU, Amazon, and the state of North Carolina went head to head over the issue in a federal court in Seattle yesterday.
The ACLU and Amazon Inc. argued that North Carolina’s attempt to force the online retailer to divulge “a general idea” of what people from the state bought so it can levy sales taxes should be ruled unconstitutional.
U.S. District Judge Marsha Pechman expects to make a decision in the Amazon.com case within two weeks.
It is likely to be only the first round in this battle as cash-strapped states such as North Carolina, Colorado, and others try to force online retailers to pay sales taxes on products sold to their residents. The states are targeting other online retailers as well. Legal experts say that regardless of the decision, it is likely to be appealed.
Here’s an update on the court proceedings from the Seattle Times.
–By Allan Maurer (Allan at TechJournalSouth.com)
For background on the issue, which TechJournal South has covered since it emerged, see:
ACLU goes to court today over Amazon Tax
Amazon Tax case could go to the Supreme Court
The Tax Foundation sees the Amazon tax as unconstitiutional: Amazon tax unconstitutional
A good, multi-state overview from Stateline:
The ‘Amazon tax’ war escalates
Previously on TechJournal South:
Amazon tax fracas already troubling startups
North Carolina and other states spar with Web retailers
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Related Stories:
- ACLU goes to court today to fight NC request for Amazon sales info
- North Carolina settles Amazon suit but reserves right to go after customers
- Amazon customer privacy rights upheld, but battle likely to continue
- ACLU joins Amazon suit against North Carolina’s tax audit request
- Online travel companies sue NC over sales tax changes
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Tags: ACLU, Amazon tax, Colorado, NC, online retailers, Seattle, state sales taxes and online retailers, US District Court Judge Marsha Pechman, WA
This is nothing but a pure witch hunt being performed by North Carolina. For one thing, they don’t have the right to demand this information from Amazon, even due to the fact that Amazon isn’t required to collect sales tax for the State due to Federal law.
And if Amazon is required to give that information, then that would mean Amazon is the one responsible for the taxes. They can’t have it both ways.
And what an incredibly stupid thing for the State to be trying to do, when families can hardly get by at it is in this economy. I guess they would rather they all end up on welfare, and cost the State all the more money.