Archives: Affiliate Nexus

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Nevada Enacts Click-Through, Affiliate Nexus

On May 27, Nevada enacted legislation (A.B. 380) that adds click-through and affiliate provisions to its sales and use tax laws.  Click-through nexus is effective October 1, 2015.  Affiliate nexus is effective three months earlier, on July 1, 2015. Under the new click-through nexus law, an out-of-state retailer contracting with Nevada residents whose referrals result … Continue Reading

C“hoosier” Affiliates Carefully: Indiana Bill Targets Fulfillment Centers

On January 17, Indiana introduced Senate Bill 269 that, if enacted, would add click-through and affiliation provisions to the sales and use tax laws. In addition, the proposed legislation specifically includes nexus for a fulfillment center (IC 6-2.5-3-1(c)(3)). Indiana’s proposed legislation is very similar to Tennessee’s in that both appear to be responses to the … Continue Reading

Tennessee: A Sweeping Affiliate Nexus Proposal

In other news from Tennessee, on January 15, Tennessee introduced H.B. 1537 that, if enacted, would add click-through and affiliation provisions to the sales and use tax laws. Tennessee’s proposed legislation in all likelihood is in response to the lost sales tax revenue from Amazon.com.   Amazon’s footprint in Tennessee is quite large with three large … Continue Reading

Hawaii Says ‘Aloha’ to Click-Through and Affiliate Nexus Legislation

On January 16, Hawaii introduced H.B. 1651 that, if enacted, would add click-through and affiliate provisions to its general excise and use tax laws. Hawaii’s proposed legislation is among several states in the past year that have considered click-through nexus legislation. If enacted, the legislation would take effect on July 1, 2015. In the proposed … Continue Reading

What’s Old is New Again In Michigan…Affiliate Nexus Legislation Reintroduced

On October 31, Michigan reintroduced legislation that, if enacted, would add affiliate and click-through provisions to the sales and use tax laws. Michigan, who first considered affiliate nexus in 2011 and is among several states who are dusting off their previous failed attempts to take another crack at enacting affiliate nexus and click-through provisions. Other states … Continue Reading

New Jersey Assembly Passes Affiliate Nexus Deferral Bill

An update on our previous coverage of affiliate nexus legislation in New Jersey: Word this morning that the New Jersey Assembly has passed A2608, a bill that would—at least temporarily—defer sales tax obligations for certain qualified persons who make “significant investments” and “create specified jobs” in the state. The bill amends the state’s sales and … Continue Reading

Utah Passes Affiliate Nexus Legislation; Urges Congress to Pass Nexus Bill

Last week, the Utah legislature passed both an affiliate nexus bill that will require remote sellers to collect and remit sales tax and a joint resolution urging Congress to pass national, remote-seller legislation. H.B. 384 expands the obligation on a seller to collect and remit sales tax to remote sellers who “sell tangible personal property, … Continue Reading

Tennessee Legislature Passes Affiliate Nexus; Awaiting Governor’s Signature

Following a series of negotiations with Amazon.com last year regarding the retailer’s plan to build two of its distribution centers in the state, the Tennessee legislature last week passed House Bill 2370/Senate Bill 2232, a new sales tax law that establishes the requirements for determining whether affiliates have physical presence in Tennessee sufficient to establish … Continue Reading

Idaho Issues Reminder to Online Shoppers; Eye on Federal Nexus Legislation

In a press release issued by the Idaho State Tax Commission on Wednesday, the Commission reminded residents that “while a lot has been said recently about whether Internet sales should be taxed” (a not-so-subtle reference to the growing affiliate nexus debate as well as a recently introduced SSUTA conformity bill–see below) under the current Idaho … Continue Reading

Arizona to Affiliates: No Nexus (For Now); Focus Shifts to Use Tax Reporting

After the Arizona Senate abruptly postponed a vote on S.B. 1338 (its affiliate nexus bill) on Wednesday, yesterday, the Senate—just as quickly as it cancelled the first vote—took up the affiliate bill, and in a vote of 20-8, resoundingly defeated the legislation. During the argument preceding the floor vote, several senators, including Sen. Jerry Lewis (R), … Continue Reading

Arizona Senate Postpones Affiliate Nexus Vote

The Arizona Senate has postponed a vote that was scheduled to occur yesterday on Arizona’s pending affiliate nexus bill–legislation that would impose sales tax collection on out-of-state internet retailers making sales to Arizona residents. The bill was among several on a voting calendar that the Senate skipped without explanation, however, Senate-watchers in Phoenix believe that the bill … Continue Reading

You’re Invited! Clouds, Codes, and Crunching Numbers: An Update on Current Multi-State Tax Developments

You’re Invited! On Wednesday, March 14, we will present our semi-annual update on the state tax developments involving E-commerce and the treatment of digital goods and services including: software, cloud computing, web-based services, web-hosting, and electronic data processing. The taxation of emerging technologies is an area of tax law that is developing as quickly as … Continue Reading

eBay Again Bids on Users to Set Up Shop on Its Main Street

Gearing up for the fight to take place in Congress over not just one but three federal sales tax nexus bills, over the weekend, eBay again reached out to its users through a mass email campaign aimed to increase awareness of and membership in eBay Main Street, the Internet e-retailer’s grassroots network that “keeps [users] … Continue Reading

Amazon… Is New Jersey Where It’s At?

The NJ Daily Record published this story over the weekend regarding New Jersey Assembly Bill A-2608, a bill introduced in the state assembly last week that would exempt an online retailer (Amazon, perhaps?) from an obligation to collect and remit sales tax on online purchases made by New Jersey residents until September 1, 2013, provided that it satisfy … Continue Reading

Sunshine State Puts the Squeeze on Affiliates? Nexus Bill Passes Florida Senate

Snowbirds aren’t the only ones flocking to Florida this February.  The E- commerce nexus battle has apparently also flown the coup to the Sunshine State.  As of last week, there were four pieces of legislation—two in the Senate; two in the House—concerning affiliate nexus in Florida.  The two Senate bills—SB 1514 and SB 2098—came up … Continue Reading

Nexus? You Betcha! Minnesota House Holds First Hearing on 2012 Affiliate Nexus Bill

A first hearing on H.F. 1849, a bill filed in the Minnesota House of Representatives last month which, if enacted, would enact affiliate nexus as the law in Minnesota, was held in the House Tax Committee last week. Two prominent retailers headquartered in Minnesota—Best Buy and Target—took the lead in testifying before the House Subcommittee. … Continue Reading

Aloha, Nexus! Aloha, Hawaii?: Hawaii Holds Hearing on Affiliate Legislation

A hearing is scheduled to occur today on H.B. 1694, a bill filed earlier this month in the Hawaii House of Representatives that includes click-through and affiliate nexus provisions.  The House Committee on Finance will hear testimony later today regarding the proposed legislation. What Does the Legislation Say? The bill defines a person “engaged in … Continue Reading

New Jersey Joins the Click-Through Nexus Initiative

As anticipated in our client alert, authored in part by my colleague Allie Carlson, New Jersey legislation has been proposed providing broad affiliate nexus provisions.[1]  In the bulk of the provisions expanding the definition of a New Jersey seller, an ownership interest in an in-state entity is prerequisite to finding nexus.  This is defined as … Continue Reading

BREAKING NEWS: PA Gives Remote Sellers a 6-Month Reprieve on Nexus Registration

Late last Friday, January 27th, the Pennsylvania Department of Revenue announced a 6-month reprieve for remote sellers required to register with the Commonwealth to collect and remit sales tax for purchases made by Pennsylvania residents.  Citing pushback from remote sellers and in particular, issues with getting tax collection software online in order to turn on … Continue Reading

Click Here for Nexus? Pennsylvania’s “New” Affiliate Nexus Guidance

On December 1, 2011, the Department of Revenue issued Sales and Use Tax Bulletin 2011-01 to remind remote sellers of their sales tax collection obligations.  For a link to the Bulletin, please visit www.reedsmith.com/patax. This Bulletin makes it clear that going forward, the Department’s policy will be to apply Pennsylvania’s sales and use tax statute1 to remote sellers … Continue Reading

Pennsylvania… Amazon Stops Here!

While it’s certainly not the first state to consider affiliate nexus legislation (since 2009, several states including: Colorado, Illinois, Rhode Island, North Carolina, Arkansas, New York, Connecticut, and California, have passed affiliate nexus—or “click-through”—laws), a bill was recently introduced in the Pennsylvania legislature that, if passed, would greatly expand the definition of nexus for sales … Continue Reading
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