Last year, Amazon.com sued the state  of New York because of a new law requiring out of state businesses to  collect sales tax. However, the state’s court recently ruled in favor  of New York. Check out the article below from the Associated Press.
New York state won a round in court against  Amazon.com over a new law requiring out-of-state online companies to  collect sales tax from shoppers in New York.
The law applies to companies that don't  have offices in New York, but have at least one person in the state  who works as an online agent — someone who links to a Web site and  receives commissions for related sales.
A state Supreme Court justice in Manhattan  ruled the suit should be dismissed, saying Amazon had no basis for legal  action.
Patty Smith, an Amazon spokeswoman, declined  comment. The company sued last year, challenging the constitutionality  of the legislation. It could still appeal.
The suit argued the change unfairly targets  Amazon, is overly broad and vague, and violates the commerce clause  of the constitution because it imposes tax-collection obligations on  out-of-state entities.
New York state argued that the law closes  a "tax loophole."
Businesses with a physical presence in  New York already collect the state sales tax on online purchases. The  proposed law would apply to companies that have $10,000 or more in New  York sales.
Officials estimated the state would gain  nearly $50 million in the next two years from the tax. New Yorkers,  like residents of many states, are currently on an honor system to report  their online spending when they file state tax returns.
 
Booksellers in New York have long protested  the lack of a sales tax on companies like Amazon.