[mlocher]

Suppose I live in CA and buy something from Amazon in IL. Just exactly where does the transaction take place? If the answer is in CA, then IL, by Fed Law, cannot tax the transaction. If you say the transaction took place in IL, I will argue that I controlled the transaction through the presented screens on my computer in CA.

In short, the transaction was an inter-state transaction.

I can't wait for this one to go to the US courts.

[CA Conservative]

I can't wait for this one to go to the US courts.

This has already gone all the way to the Supreme Court. Unless a business has a physical presence in the state, you cannot make them charge sales tax. States like Illinois and California are trying to argue that the in-state affiliates provide that nexus that allows them to tax companies like Amazon. So when these laws pass, Amazon simply ends the affiliate program for that state. It doesn't hurt Amazon, doesn't help the state, but is devastating to those affiliates that need the revenue from the advertising...

[Anitius Severinus Boethius]

Amazon is not in Illinois, though, it is in Washington. So if you go to a website that sits in Illinois and click on an Amazon link, you are now in Washington. That is where all sales are conducted. And why these States are cutting their own throats by trying to get a Washington based retailer to collect taxes for them.

[chesley]

Here’s something I only found out recently, and I cannot vouch for the accuracy of the information. It was stated by the host of a local talk show.

In Alabama, say you are on vacation in Florida and buy something. You are supposed to remit to the state of Alabama the Alabama sales tax on that item.

Huh??