This will no doubt cheer upthe big-box retailers gunning for Amazon.com
, but Texas was in a good position to win this one; Amazon.com has an unambiguous, no-fooling, no need to evade Quill Corp. v. North Dakota physical presence in that state, in the form of a distribution center. The list found here should give some clarity over where and when Amazon.com will end up fighting these particular battles. Put simply: if you want Amazon.com to collect sales tax for you in your state, get them to put an office or distribution center there. You might end up actually winning that fight, then.
In other words: Amazon taxes DO NOT WORK. Being a good business environment does. As, say, Texas is demonstrating, largely at, say, Illinois’ expense.
Moe Lane
Full disclosure: I am an Amazon.com affiliate for Maryland.
Amazon has had nexus here since 2005. They owe TX over a quarter billion dollars in back taxes, penalties, and interest over that time. Reading between the lines, it sounds like the state is going to waive that in return for large capital investments and hiring commitments.
I have enjoyed being able to avoid paying sales tax, but this is long overdue.