Justices refuse to hear appeal of NY internet taxation
WASHINGTON (AP) — The Supreme Court on Monday refused to consider throwing out New York state’s taxes on Internet purchases on websites like Amazon.com, a move that could change the way Internet commerce works.
The high court refused without comment to hear appeals from Amazon.com LLC and Overstock.com Inc., in their fights against a state law that forces them to remit sales tax the same way in-state businesses do.
Web retailers generally have not had to charge sales taxes in states where they lack a store or some other physical presence. But New York and other states say that a retailer has a physical presence when it uses affiliates — people and businesses that refer customers to the retailer’s website and collect a commission on sales. These affiliates range from one-person blogs promoting the latest gadgets to companies that run coupon and deal sites.
Amazon and Overstock both use affiliate programs. Amazon has been collecting sales tax in New York as it fights the state over a 2008 law that was the first to consider local affiliates enough of an in-state presence to require sales tax collection. Overstock ended its affiliate program in 2008 after the law passed.
The Supreme Court refusal to hear the websites’ appeal likely will prompt more and more states to attempt to collect taxes from website purchases. Around 20 states, including New York, already have similar laws on the books. The National Council of State Legislatures estimated that states lost an estimated $23.3 billion in 2012 from being prohibited from collecting sales tax from online and catalog purchases.
High court ends Liberty U. lawsuit over health law
WASHINGTON (AP) — The Supreme Court has turned away a Christian university’s attempt to overturn a key part of the Obama administration’s health care law.
The justices did not comment Monday in leaving in place a federal appeals court ruling dismissing Liberty University’s lawsuit.
Liberty made several arguments in challenging the portion of the health care law that requires most employers to provide health insurance to their workers or pay a fine. The 4th U.S. Circuit of Appeals in Richmond, Va., rejected those claims.
The Supreme Court separately is considering whether for-profit corporations can mount religious objections to the law’s requirement to include birth control among preventive health benefits.
The case is Liberty University v. Lew, 13-306.
Court seems wary about American Indian casino law
WASHINGTON (AP) — The Supreme Court seemed wary of making any changes to tribal sovereignty laws as it considered whether Michigan can permanently block an American Indian casino.
Justices heard arguments Monday from state officials who want to shutter the Bay Mills Indian Community’s casino about 90 miles south of its Upper Peninsula reservation. Michigan argues that the tribe opened the casino in 2010 without permission from the U.S. government and in violation of a state compact.
The lower courts say they don’t have jurisdiction over parts of this argument, and that the tribe also has sovereign immunity.
Michigan Solicitor General John Bursch says that if Michigan could sue a foreign country for opening an illegal business on state land, they should be able to sue to stop the casino.
