That's a misunderstanding of tax law. Borders partnering with Amazon does not give Amazon a local presence within the meaning required for Amazon to be subject

That's a misunderstanding of tax law. Borders partnering with Amazon does not give Amazon a local presence within the meaning required for Amazon to be subject to that localities tax authorities. Amazon buying Borders (the company) would have the same result, because Borders would remain a separate taxable entity. Amazon buying Borders' assets (i.e., the stores, inventory, etc) would be the only situation in which Amazon would acquire a local presence allowing the locality to tax Amazon.