SANTA FE, N.M. (AP) — 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 on Wednesday involved a limited liability company that's a subsidiary of Barnes&noble.com, Inc.
The subsidiary was assessed gross receipts taxes of $534,000 for sales in New Mexico from 1998 to 2005. The company protested and a state agency hearing officer said the online retailer wasn't required to collect the New Mexico tax because it had no presence in the state. Company offices were outside of New Mexico.
The Court of Appeals said "in-state use of the Barnes & Nobles trademarks" established a connection to New Mexico for taxing the online sales to people in the state.
Copyright 2012 The Associated Press.