Court To Hear Arguments In Amazon Sales Tax Case

A federal district court is expected to hear arguments in a lawsuit filed by Amazon against the North Carolina Department of Revenue, which has sought records of the state's residents who have bought items from the Internet retailer.

A federal district court in Seattle will hear arguments in a motion by North Carolina to dismiss Amazon's lawsuit, which was filed in April. Under current law, companies are not required to collect sales taxes from customers who live in states where the companies do not have a physical presence. Consumers who live in states with sales taxes, however, are generally obligated to pay them on items they bought from an out-of-state retailer. Given the growing budget problems facing numerous states, many states have sought to close this loophole or to try to collect the taxes they are owed from remote sales. According to Amazon, North Carolina sought the names and addresses of Amazon customers who live in North Carolina along with every item they bought and the price paid since 2003.