Amazon Not Liable for Improperly Collecting Taxes on Gift Cards

Amazon.com Services LLC didn’t improperly collect state sales taxes when it sold cards for digital currency used in a video game and memberships to PlayStation Plus.

The cards weren’t gift cards or digital goods exempt from taxation, Judge Tana Lin of the US District Court for the Western District of Washington said May 8. She adopted the report and recommendation of Magistrate Judge Brian A. Tsuchida.

Consumers from Massachusetts, New York, and Washington purchased cards for either Robux currency used in the video game Roblox, or a one-month PlayStation Plus membership. They alleged that Amazon improperly charged state sales tax ...