“We’ve developed compelling legal arguments and plan to seek an injunction before this law goes into effect,” said Steve DelBianco, executive director of NetChoice, which represents Overstock.com, eBay, PayPal and other e-commerce businesses.
“The state doesn’t have the legal authority to tax businesses that don’t have a physical presence within the state,” he said. “Courts have consistently blocked such attempts.”
DelBianco said the rules would have a “boomerang effect” on Bay State retailers and consumers, who would be obligated to pay sales taxes on out-of-state transactions.
“That means every Massachusetts business that simply creates a website would find itself subject to the taxation and regulation of every other state,” he said.
“It’s a novel approach, but a blatant violation of that act,” DelBianco said.
Also at Eagle Tribune