Amazon.com has no nexus in North Carolina -- it keeps no office of warehouse there. Under current federal case law, then it does not have to charge sales tax. But North Carolina is trying to use the affiliate argument to claim Amazon.com has a "substantial nexus" to the state. Other states have followed suit and are trying to force Amazon.com to charge sales tax. Texas just sent a huge tax bill to Amazon.com, which Amazon.com is refusing to pay.
As the recession drags on, cash-strapped states are looking anywhere they can to find revenue and out of state sales are a target, despite studies which show such laws don't provide additional revenues. As for sending sales tax bills to North Carolina residents years after they bought a book on Amazon.com, well, that's just ridiculous -- and at least one federal court agrees.
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