Dive Brief:

• The U.S. Supreme Court on Monday rejected appeals from Internet retailers Amazon.com Inc. and Overstock.com Inc. over a New York law forcing them to collect taxes from consumers in the state.
• The companies argued that New York's law violated the Constitution by collecting taxes from companies without facilities in the state.
• In a 1992 case involving a mail-order company, the Supreme Court ruled that retailers could be forced to collect taxes only in states where they have a "physical presence," but a handful of states have passed "Amazon laws" requiring the Web's largest sellers to collect.

Dive Insight:

So-called "Amazon laws" are the result of the estimated $23 billion that states lose annually in uncollected sales taxes as a result of online retailers. Amazon, which argued New York's law "subjects Internet retailers to significant burdens on pain of serious civil and criminal penalties," currently collects taxes in 16 states — something it has done increasingly as it adds distribution centers nationwide.