Responding to state sales tax laws for online retailers - a case study of Amazon and the states

As state budgets have come under increasing pressure, many states have enacted so called "Amazon taxes" that seek to have large online retailers collect state sales tax. States are attempting to expand the concept of nexus to include marketing affiliates and corporate subsidiaries. Amazon and other large retailers have reacted in different ways depending on the state and the specific legislation. This paper discusses the potential impact of these new laws and how both states and online retailers have dealt with the issues involved.