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MYFOXNY.COM - A New York appellate court ruled last week that the state has the right to require Internet retailers to collect sales taxes from in-state shoppers.

The court ruled on Nov. 4, 2010, that the law, which was challenged by Amazon and Overstock, is legal and enforceable.

"This is a victory not only for the State, but for all of its 'Main Street' retailers who employ New Yorkers, pay property taxes, and contribute in other ways to the local community," said Jamie Woodward, acting commissioner of the Department of Taxation and Finance. "Until this law was enacted, some Internet retailers had an unfair price advantage because they did not collect sales tax."

Amazon had challenged the law, saying it is unconstitutional. In 2009, a Manhattan trial judge disagreed, and the appellate court ruled the law constitutional.

For New Yorkers, this means shoppers will continue to pay sales tax on items purchased from Amazon, Overstock, and other online retailers.