[Billradio]

In the last 4 states that attempted to gather sales taxes based on the location of Amazon.com affiliates, Amazon just dropped the affiliates in those states whether that state adopted those laws or not.

Now Texas is going after Amazon for back taxes because of an Amazon subsidiary that has a warehouse in Texas. This time it is not affiliates at issue, but like in the other states, Amazon could drop Texas affiliates, just to 'send a message'.

[MichaelColey]

I really doubt they would do that, as this has nothing to do with affiliates and there's no threat of trying to use affiliates to establish nexus. Amazon has a distribution warehouse in Texas, and that's what Texas is saying establishes nexus.

[isellstuff]

Good link, thanks.. Its good that this is shipping center focused, although I do worry about affiliates getting drawn into the mix at some point.

[Billradio]

Michael,
Logic would say you're right, but after I spent several weeks writing letters, sending emails, making phone calls, buttonholing representatives and making a presentation for a Senate committee to successfully get affiliates excluded from the nexus of our state's "amazon law"...only to be dropped as an Amazon affiliate because of an "unfavorable tax climate", I must say I'm now leary.

Originally Posted by MichaelColey

I really doubt they would do that,

[isellstuff]

From this Wall Street Journal Article:
Texas Says Amazon Owes $269 Million in Sales Tax - WSJ.com

An Amazon spokeswoman said it has an existing fulfillment center in Texas that is an affiliate, but not subsidiary, of the Amazon retailing entity.

Errr, see, its wording like that that scares me.. You can see how things could degrade..