E-tax?

If New York goes through with its plan to make Amazon and other e-tailers collect sales tax from consumers, the state will almost certainly face a tough battle in court, legal experts say, according to MediaPostPublication.

The bill, passed recently by the state and awaiting signature by Gov. David Paterson, would require Web retailers that use in-state affiliates to collect New York sales tax, according to the report.

Amazon Director of Strategic Communications Craig Berman said the company was still reviewing the bill. "At this point, it would be premature for us to comment," he said in the article.

The U.S. Supreme Court ruled 16 years ago that states cannot require out-of-state retailers like catalog companies to collect sales tax unless they have a brick-and-mortar store or other physical presence in those states. But New York says it should be able to force companies that use affiliates in the state to collect taxes.