Online Sellers Seek to Take Down NY Income Tax Expansion (2)

A trade group for catalog and online sellers asked a New York trial court to overturn the state’s regulation imposing additional income tax obligations on out-of-state retailers that do business over the internet, soon after the group defeated a similar regulation in California.

The American Catalog Mailers Association told the New York Supreme Court for Albany County that the challenged portions of the Department of Taxation and Finance’s regulation “effectively erase longstanding federal protections against overreach by state tax agencies.” They argue the rules contradict Public Law 86-272, the federal law that prohibits states from imposing income taxes on ...