For Immediate Release:
On June 22nd, attorneys for the Guild argued a motion for Summary Judgement in front of a seven-judge panel in the Commonwealth Court of Pennsylvania for our action challenging Pennsylvania’s illegal pursuit of Amazon merchants for back taxes.
This past Friday, September 9, 2022, we learned that the Court has ruled in favor of the Online Merchants Guild, stating that:
“After careful review, we hold that Revenue has failed to provide sufficient evidence that non-Pennsylvania businesses selling merchandise through the FBA Program (FBA Merchants), and whose connections to the Commonwealth were only shown to be limited to the storage of merchandise by Amazon in one of Amazon’s Pennsylvania warehouses, have sufficient contacts with the Commonwealth such that Revenue can mandate they collect and remit sales tax or pay PIT [personal income tax]”
This ruling marks the first time ever a court has ruled that Amazon Merchants cannot be held liable for sales or income tax within that state simply because they have inventory located in an Amazon warehouse in said state. In other words, FBA by itself does not establish nexus.
A full copy of the ruling may be viewed belowOMG v Hassell Summary Relief Granted Order