Recently, Michigan Governor Rick Snyder signed two bills that introduce affiliate and click-through nexus:

S.B. 658 (for sales tax) and S.B. 659 (for use tax).  The bills take effect October 1, 2015.  Michigan first considered affiliate nexus in 2011.

As we reported, most recently in December 2013, Michigan’s affiliate nexus provisions are similar to those of other states with one exception:  It extends the rebuttable presumption of nexus to one who “sells a similar line of products” as another seller with nexus and “does so under the same business name as the seller or a similar business name as the seller.”  This novel statutory language creates the threat of nexus by similar-sounding trade names.

Additionally, the new rebuttable presumption of click-through nexus applies to sellers annually earning more than $10,000 from in-state referral companies and more than $50,000 from in-state customers.

We will follow this legislative enactment, including attempts to enforce the novel attribution nexus provision, and whether larger e-commerce companies fire their Michigan affiliates similar to their Vermont counterparts earlier this month.