“but the law says if you have inventory they call that a nexus.”
The law is, at best, unclear. Some states (PA in particular) have different interpretations but their interpretations don’t make it so.
Read the Supreme Court QUILL case in which the US Supreme court ruled “SUBSTANTIAL presence” is required for nexus. (my emphasis… the word SUBSTANTIAL is used throughtout their decision… why do you think they put it there?)
If you think 1 book in an FBA warehouse in a state I don’t want to do business with (and may not have even shipped to) is “substantial” then I’ve got some oceanfront property in Arizona to sell you.
Amazon is intentionally vague in what your sales tax obligations might be.
But, I can tell you this, the whole Supreme Court case was based on what’s reasonable. And it is not reasonable to expect a mom and pop business to have to deal with the likes of 20+ states that they have never set foot in.
There are bills pending in congress and, once passed (and they have the momentum to pass in the next few years) they will resove this issue.
Edited by: Foldnil on Nov 21, 2012 12:21 PM