Amazon sues NY over Internet sales tax collection

LBANY, N.Y. (AP) -- Amazon.com is suing New York over a new law that requires out-of-state online companies to collect sales tax from shoppers in New York.

"We are challenging the constitutionality of the recently enacted legislation in New York," Amazon spokeswoman Patricia Smith said.

Officials estimated the state would gain about $50 million by requiring Internet giants such as Amazon.com to collect state sales tax. New Yorkers, like residents of many states, are currently on an honor system to report their online spending when they file state tax returns.

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