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Remember that lawsuit filed by Amazon against the state of New York’s new tax policy requiring online stores to collect sales taxes? Well, that tax policy has gotten a new detractor in the form of another big online retailer, Overstock. Following in the footsteps of Amazon, Overstock has also filed a lawsuit challenging the new tax law. Overstock officially joined Amazon in calling the new law unconstitutional and asked the New York Supreme Court for an injunction, due to the potential of the law being unconstitutional.

Although Overstock has already informed its New York-based affiliate advertisers that they would no longer provide advertising for Overstock beginning June 1, the online store is still hoping that they will win the case and hopefully won’t be required to collect the 8.75% sales tax to its New York customers anymore. On the other hand, Amazon has already begun charging the sales tax.

Incidentally, the Amazon case remains unresolved, and this new lawsuit filed by Overstock might trigger other online retailers to follow Amazon and Overstock and file their respective complaints against the law. Should that be the case; Will New York state repeal the implementation of the law? We could only hope so, and we’re not even from Amazon or Overstock. Of course, this law seems a little against the current, as New York State residents are already required to claim any “untaxed out-of-state purchases” when filing their annual taxes.

Read [Reuters]

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