Amazon has also been collecting NY State sales tax for quite some time now. Does anyone know if Amazon has any physical presence in NY State? I've never received anything from Amazon that has been shipped from NY.
I noticed that items that are sold by Amazon always incur NY tax, but items sold by independent retailers who sell through Amazon's site often don't incur tax.
NY argues that Amazon's relationship with NY-based affiliates constitutes a NY-based Amazon marketing force that produces a sufficient nexus with the state to make them subject to NY law on collecting sales tax. It's currently being litigated [1].
I recall reading [2] that Amazon actually supports the federal legislation though, because they're slowly moving towards having a 50-state presence anyway, as things like grocery delivery and same-day delivery become a bigger part of their strategy.
That was their initial "scorched-earth" strategy, but they quickly dropped it. In recent disputes, e.g. with Texas and New York, they haven't terminated affiliates, and have instead opted for a mixture of negotiations and legal battles.
Amazon also collects sales tax in Pennsylvania, where they have significant distribution facilities. However, it took several years for the tax collection to materialize.
Technically residents of a state are supposed to pay "use tax" if not collected by the seller. Of course almost nobody does this... my hunch is that doing it once would invite perpetual persecution from the state department of revenue.
I noticed that items that are sold by Amazon always incur NY tax, but items sold by independent retailers who sell through Amazon's site often don't incur tax.