Amazon sued in New york and LOST! Appeal was dismissed too. New York collected $48 MILLION dollars from 33 out of state merchants as a direct result of the internet sales tax from June1 2008 to Dec 2008. I heard they will collect over $75 million this year the first full year of the tax. Consumers are supposed to pay this tax anyway. Would you rather the governemtn come after you? If people paid it like they should they wouldn't have to pass this law.