On April 17, 2018, The United States Supreme Court heard the case of South Dakota v. Wayfair, Inc., and issued its decision on June 21, 2018.
[7][15] On October 26, 2012, Amazon reached an agreement with the Arizona Department of Revenue to pay $53 million to settle unpaid sales taxes.
[6] In 2009, California representative Nancy Skinner pushed legislation to tax online sales that was approved as part of the state budget.
The bill required out-of-state online sellers with affiliates in California to collect sales tax on purchases made by state residents.
[25] As of March 2011, four bills are pending in the state legislature that would define the use of associates located in California-* for sales referrals as activity subject to taxation by California.
"[26] According to the American Independent Business Alliance, the corporation has operations in at least seven California cities and should be forced to collect sales tax regardless of its threats.
One of the groups behind the boycott, Think Before You Click CA, says improved sales tax enforcement will bring in $200 million per year in additional revenue and encourage people to shop at local traditional retailers instead of online.
Ruling Judge Neil M. Gorsuch contended that overturning the law would create a statewide "tax shelter" for online retailers.
While it was "sold as a significant revenue raiser and a step toward improved tax fairness, it is accomplishing little more than pushing online entrepreneurs out of state.
[51] Amazon announced in October that it plans to build several facilities in Illinois by 2017, including the first this year, which eventually would have required it to collect the state's use tax.
[52] Indianapolis based Simon Property Group sued the state in 2011 to force it to collect sales tax from Amazon in an attempt to level the playing field.
[60] In a 2011 editorial The State (A South Carolina paper) criticized the Kentucky incentives given to Amazon to build a distribution center in Lexington.
On October 1, 2014, Amazon started collecting sales tax in Maryland ahead of a planned opening of a new distribution center in Southeast Baltimore.
Currently Missourians are required to remit use tax for purchases made online but the state government has no practical method to force compliance.
Rep. Margo McNeil cited a University of Tennessee study saying that Missouri stands to lose $187 million in 2011 by not taxing online sales.
McNeil also said the streamlined sales tax is a good way to end the unfair advantages enjoyed by online retailers over traditional businesses.
The legislation was proposed by the Retail Association of Nevada and was expected to generate $16 million annually in additional sales tax collections.
In order to comply with the physical presence requirement of Quill Corp. v. North Dakota the law targets out-of-state retailers who make use of New York-based affiliates.
[92] Oklahoma Governor Mary Fallin announced in February 2017 that on March 1, Amazon would begin collecting sales taxes on online purchases.
[96] On January 27, 2012, Meuser said that the new tax collection policy was being granted a one time extension until September 1, 2012, because the original "compliance deadline [was] impractical from operational and technical standpoints.
But in the end, this special exemption only passed after backroom deals and last-minute promises were made by Amazon officials – something which should disappoint everyone interested in transparency and good government.
[106] Amazon attempted to avoid being required to collect Tennessee sales tax during negotiations with economic development officials to build two warehouses outside of Chattanooga.
Tennessee revenue officials will not reveal any specific information on a deal with Amazon as they claim doing so would violate state confidentiality laws.
[113] Amazon has decided to close the Irving distribution center in order to avoid future attempts by Texas to force the collection of sales taxes.
[117] Legislation pushed by Rep. John Otto to require Amazon and other online retailers with a physical nexus in the state of Texas to collect and remit sales tax became law in 2011.
The legislation deems any company with a store, distribution center, or other place of business in Texas as having a physical nexus there for the purpose of collecting sales tax.
Robert F. McDonnell's office announced that an agreement that Amazon.com would begin collecting state sales tax had been reached with Amazon.com and members of the General Assembly.
This was after West Virginia passed a law requiring out-of-state retailers to apply sales tax if they or a subsidiary have a physical presence in the state.
[139] Sky News reported that Amazon faced a temporary backlash and boycott from the general public and other businesses in the UK as a result.
Amazon severed its relationships with affiliates in Colorado due to efforts by the state government to collect sales tax on internet purchases.