Quote:
Originally Posted by HarryT
Am I right in thinking that the "rule" is that they have to charge sales tax if they have a physical presence in a state? If that's so, and they have an office somewhere in Texas, it seems pretty unambiguous that they would then need to charge sales tax in Texas. Where's the "loophole" that allows them not to do so?
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Yes you are right but the loophole is that Amazon opened the distribution center as a wholly owned subsidiary that is a separate corporation. Because it is a distribution center, which doesn't actually sell anything, and because it is a wholly separate corporation although wholly owned by Amazon, Amazon claims it doesn't have a "presence" in Texas.