In a decision expected to have a major impact on online retailing, a New York State Supreme Court judge has approved a new state tax that’s being called the “Amazon Tax.” According to a report by Timothy Prickett Morgan for Channel Register, “Earlier this year, Amazon.com and Overstock.com sued New York over an ingenious new law that forces the big-name online retailers to collect sales tax if they maintain affiliate networks in the Empire State,” and yesterday, “Judge Eileen Bransten dismissed them both.” The law has been closely watch by tax collectors around the country, and is expected to lead to other states implementing similar taxes on online retailers. Previously, New York State law required retailers to have a physical presence in the state in order to be taxed. But after brick-and-mortar stores complained that gave Amazon an unfair advantage, the law was tweaked to create the “Amazon Tax.” Amazon and Overstock sued the state, and, as per the Channel Register report, “Judge Bransten basically shot down all of the company’s claims that New York state was picking on Amazon,” by saying the company had a “nexus” with sufficient business in New York State — warehouses and shippers, for example — to qualify. Specifically, Bransten said in her ruling that the Amazon Tax “simply obligates out-of-state sellers to shoulder their fair share of the tax collection burden when using New Yorkers to earn profit from other New Yorkers.” Both companies are expected to appeal. Neither one had a comment.