Amazon/Overstock Gamble May Pay Off

post from Internet Sector and Stocks Analysis from Seeking Alpha on 24 July 2008 09:13:18 AM. © Internet Sector and Stocks Analysis from Seeking Alpha

Boaz Berkowitz submits:

I was surprised to notice how silent Amazon (AMZN) appeared to be vis-à-vis New York’s new tax law during the company's earnings call yesterday. Thomas Szkutak, Amazon’s Senior VP & CFO, brushed off questions regarding the tax issue as “too early to comment.” By contrast, in Overstock’s (OSTK) latest Q2 2008 earnings call transcript, the company had much to say about the issue. What really caught my attention was when Jonathan Johnson, Overstock’s SVP, stated that the New York State Senate had voted to repeal New York’s most recent tax law which would put this whole mess behind us.

For those of you who weren’t aware, New York State passed a new law that went into effect on June 1, 2008. The law, dubbed “the Amazon tax,” requires all internet companies with affiliates in NY State to charge sales tax on shipments bound for New York. The State expects this to increase tax revenue by $50 million.

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