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United States Supreme Court Denies Review of New York Click-Through Nexus Law

State and Local Tax

By Jack Stewart

On December 2, 2013, the United States Supreme Court denied petitions for certiorari filed by Overstock.com and Amazon.com regarding a ruling earlier this year by the New York Court of Appeals upholding New York’s click-through nexus law.

The law was directed at out-of-state internet vendors that entered into agreements with New York residents who maintained a website and were paid a commission for sales made through a link on their site.  

Because these vendors were paid a commission, the law created a rebuttable presumption that the New York website owners were actively soliciting on the behalf of the out-of-state vendors.

Although the court denied the petitions of certiorari without comment, it may have been the rebuttable presumption component of the law that led the court to decide not to review the case.  Regardless of the court’s reasoning, the matter about the constitutionality of New York’s click-through law appears to be settled.

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