[btilly]

Several states have passed laws saying that affiliates in a state are enough to establish a nexus. Precedent varies by court about whether this is so. For example New York said yes, Illinois said no. No case has yet found its way to the Supreme Court.

I do not know of precedent involving subsidiaries. But the legal case for it would seem to me to be stronger than it is for affiliates. And even if the courts did rule otherwise, well, if the state really wants to go after a local subsidiary, surely they can make their life hard in SOME way...

According to California law AB153, affiliates count as a nexus. This did not get legislated. Amazon responded by cutting off all California affiliates after that was passed. Then the issue of subsidiaries was raised. After some negotiation, California did not go after subsidiaries like A2Z Development, and Amazon started collecting California state tax in 2012.