Overstock.com, Inc. v. New York State Department of Taxation & Finance

OPINION OF THE COURT

Chief Judge Lippman.

Plaintiffs challenge Tax Law § 1101 (b) (8) (vi) (the Internet tax), alleging that it is unconstitutional on its face because it violates the Commerce Clause by subjecting online retailers, without a physical presence in the state, to New York sales and compensating use taxes. They also maintain that the Internet tax violates the Due Process Clause by creating an irrational, irrebuttable presumption of solicitation of business within the state. We reject plaintiffs’ facial challenges.

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Plaintiff Amazon.com, LLC is a limited liability company formed in…