Court Rules Online Sales Must Be Taxed

Apr 19, 2012

The state Court of Appeals has ruled a national online retailer must pay more than a half million dollars in taxes on sales of books, music and movies in New Mexico.

The court's ruling today involved a subsidiary of Barnes&Noble.com which was assessed gross receipts taxes for sales in New Mexico from 1998 to 2005. The company protested and a state agency hearing officer said the online retailer was not required to collect the New Mexico tax because it had no presence in the state.  Company offices are outside of New Mexico.

The Court of Appeals says "in-state use of the Barnes & Nobles trademarks" established a connection to New Mexico for taxing the online sales to people in the state.