Amazon’s complaint stems from a revision in New York state tax law that changes the definition of businesses obliged to pay state sales tax. Under previous code, Amazon was not obligated to pay sales tax for New York customers because it did not have employees or offices in the state of New York, and it did not actively solicit New Yorkers’ business. Under the new tax code, however, Amazon must to pay sales tax because it “directly or indirectly” pays New York-based entities for referring customers to the site through its popular Amazon Web Services and Associates Programs – effectively classifying Amazon’s “solicitors” as an appropriate physical presence.

Seattle-based Amazon called the new tax law “unconstitutional,” claiming that New York state legislators unfairly targeted it – as evident by the law’s nickname, which many referred to informally as the “Amazon Tax.” In its complaint, filed (PDF) in last April, Amazon says New York’s new tax statue violated the Commerce and Due Process clauses of the United States Constitution, in addition to other clauses, which chiefly prohibit taxing out-of-state entities and “overly broad and vague” presumptions of “solicitation.”

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