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North Carolina drops online sales-tax effort

Published on .

Raleigh, N.C.—North Carolina has agreed to drop its efforts to ask e-commerce sites for details about state residents who make online purchases.

North Carolina had sought the information to impose a sales tax on online purchases by state residents, but was sued by Amazon.com and the American Civil Liberties Union on privacy grounds. Under federal law, a state cannot compel out-of-state Internet sellers to collect sales tax; Amazon.com is based in Seattle.

Last month, a federal judge blocked a Colorado law requiring online sellers to divulge customer purchase information so the state could later pursue those customers for sales tax payments.

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