Amazon.com Could Owe Texas Sales Tax

May 9, 2008 3:50 p.m. EST

Dallas, Texas (AHN) - Texas officials are investigating whether online retailer Amazon may owe state sales taxes. Amazon is now involved in a legal fight after New York claims the Internet company should pay sales tax.

The Texas comptroller's office told the Dallas Morning News Friday it was unaware that Amazon had a presence in the state. Amazon operates a distribution center in Irving, Texas, the AP said.

The U.S. Supreme Court in 1992 ruled states could collect sales tax from out-of-state retailers if the company had a "physical presence" in the state.

Amazon has taken the New York State to court, arguing it doesn't have a location there. The Seattle, Wash.-based retailer collects taxes on shipments to Kansas, Kentucky, North Dakota or Washington.