Sales Tax Vulnerability

In April, 2008, the State of New York inserted a item in the state budget asserting sales tax jurisdiction over Amazon.com sales to residents of New York, based on the existence of affiliate links from New York-based web sites to Amazon.com. New York asserts that even one such affiliate constitutes Amazon.com having a business presence in the State of New York, and is sufficient to allow New York to tax all Amazon.com sales to state residents. It is expected that Amazon.com will challenge this in court.