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Barbara Weltman

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Amazon’s Fulfillment by Amazon (FBA) Program Doesn’t Create Nexus

February 16, 2023 / By Barbara Weltman

States may impose their income taxes and other taxes on businesses that have a sufficient nexus (connection) to them. In one state court decision, retailers who sold merchandise through Amazon’s Fulfillment by Amazon (FBA) program did not have sufficient nexus by reason of having their goods in an Amazon warehouse within the state (Pennsylvania). Amazon could move the merchandise around the country to other warehouses and retailers didn’t know about or have control over this. #IdeaoftheDay

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