Amazon, Overstock.com Lose N.Y. Sales Tax Challenge

, The Litigation Daily

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Wondering how seriously Amazon.com and Overstock.com Inc. took their U.S. Supreme Court cert bids in cases challenging New York's online sales tax law? Look no further than the names gracing the companies' petitions: Gibson, Dunn & Crutcher's Theodore Olson for Amazon, and David Frederick of Kellogg, Huber, Hansen, Todd, Evans & Figel for Overstock.

The two heavyweights struck out on Monday (coincidentally, the biggest day of the year for online shopping), when the justices declined to hear the appeal without explanation. That means online retailers are stuck collecting sales tax on New York purchases, even if they don't have offices in the state.

Tony Mauro, veteran Supreme Court correspondent for Lit Daily affiliate The National Law Journal, has more on the case here.

The New York Court of Appeals sided with the state back in March, ruling that a 2008 statute mandating payment of New York state sales taxes for online purchases by New Yorkers is constitutional. Gibson Dunn's Randy Mastro argued for Amazon before the state appellate court, while Daniel Connolly of Bracewell & Giuliani argued for Overstock.com. Assistant Solicitor General Steven Wu appeared for the state.

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