• February 15, 2008

New York governor Eliot Spitzer is floating a plan to require online retailers like Amazon.com to collect state sales tax.

Spitzer's office estimates that the state could benefit to the tune of $47 million, if e-commerce stores collected New York's sales tax on goods sold online.

A 1992 U.S. Supreme Court decision says that states can't collect sales tax from stores unless they have a physical presence in the state. A spokesperson from Spitzer's office said Amazon's affiliate program gives the company that presence, because some of the affiliates who make referrals to the company are based in the state.

--Wendy Davis