It sounds to me like the ball is still in play, but it looks like all sales to Wa. State residents are subject to state sales tax as of now.

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From goodjobsfirst.org

Cabela's Caves on Nexus, Will Collect Sales Tax on Internet and Catalog Sales

Cabela's recently announced that it will begin collecting sales tax on catalog and internet sales to residents of states where it also has retail stores. That's big news: Cabela's has been a holdout among national retailers with both "bricks and clicks," most of whom quit dodging such sales tax collections years ago. Normally, state "nexus" rules require companies with a substantial physical presence in the state to collect sales tax on all purchases that occur in the state - whether they occur in a store, via the internet or by catalog.

But as it morphed from mostly a catalog operation to also include a chain of (massively subsidized) mega-stores, Cabela's sought and won rulings from attorneys general in a reported 19 states that its catalog, internet, and retail divisions were essentially separate entities and therefore did not create overall nexus.

The #1 outdoor sporting goods retailer will end the "separate entity" business by installing in-store internet kiosks and allowing customers to pick up internet and catalog purchases at its retail locations. Prior to this announcement, Cabela's faced skepticism on its nexus immunity claim from some states. In Kansas, the Department of Revenue has assessed Cabela's $392,000 in back taxes and penalties on internet purchases made between 2002 and 2004. And last summer in Maine, when competitor L.L. Bean and others weighed in, that state refused to grant a nexus exemption, even when Cabela's threatened to cancel a new store there. Cabela's is building the store anyway.

Besides the tax issues, Cabela's nearly lost a previously authorized subsidy. The Washington County (Wisconsin) Board last month voted against borrowing funds to supply Cabela's with a $4 million subsidy. However, the County had pledged such funds to the retailer in 2005 in exchange for public ownership of one of Cabela's in-store pseudo-museums (with taxidermy, etc.). But the current board, which was elected in 2006, narrowly rejected the bonding proposal. However, two weeks later, after a closed door meeting with the county attorney, the county commission again reversed itself, voting to approve the bonding. While many of the commissioners who switched their votes cited obligations to uphold a development agreement they inherited, opponents questioned whether one board of supervisors can compel a future board to vote a certain way.

Meanwhile, Cabela's voracious quest for mega-store subsidies marches on; it is averaging about $25 million per facility or about $500 million to date. Legislators in Washington State were recently displeased to learn that some of their $100 million job fund subsidized low-wage jobs. Among the criticized deals: a new Cabela's in Lacey, where most of the jobs will pay only $9 an hour, barely a dollar over the state's minimum wage. Incredibly, the program's rating criteria gave more weight to expected tax revenues than to family-wage jobs.

Credit Cabela's for its audacious candor: "We've never built a store anywhere without some kind of incentive," a spokesman told the Seattle Times. Bass Pro, the #2 outdoor sporting goods retailer, often seeks mega-store subsidies as well, with more than $200 million to date. Click here for our recent article on Cabela's and Bass Pro - including Cabela's pseudo-museums.

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