Archives: E-Comm

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Montana: OTCs Subject to Retroactive Sales Tax Assessments

Recently, the Montana Supreme Court ruled 5-to-2 that online travel companies (OTCs) were subject to sales tax under the existing sales tax statute. Furthermore, their liability is retroactive to November of 2010. However, the OTCs were not subject to lodging tax. Sales tax is imposed “on the purchaser and must be collected by the seller.” … Continue Reading

Breaking News: USSC Denies Cert in Amazon and Overstock Cases – Taxing Tech in the News

On December 2, the United States Supreme Court declined to hear appeals by Amazon.com and Overstock.com of a March 2013 decision by New York’s highest court upholding the constitutionality of that state’s affiliate nexus law. Read Kelley Miller’s comments on this news in today’s edition of Law360 here.… Continue Reading

You Lose? You Lose. Illinois Begins Online Lottery Sales This Weekend

*UPDATED* The New York Times just posted AP’s TechBits roundup, which reports that first day sales on online lottery tickets netted the state of Illinois $15K.  The first ticket was purchased at 7:03 AM.  Illinois residents must register and verify their age in order to purchase the tickets.  Sales include tickets for Lotto as well as … 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

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

Just in Time for iPad3? California Updates Internet Sales and Digital Downloads Guidance

For iPad devotees, California’s timing couldn’t be better. As the world (including, admittedly, the editors of this blog) await with baited-breath the possible news from Apple this morning on the next generation of its iPad tablet, the California State Board of Equalization has issued revised guidance on the taxability of internet sales, including downloads of … 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

BREAKING NEWS: VA and Amazon Strike a Deal…

Gov. Bob McDonnell’s administration has reached a deal with Amazon.com Inc. for the giant online retailer to start collecting sales taxes in Virginia. The agreement calls for Amazon to start collecting the taxes of purchases made by Virginians on Sept. 1, 2013. The Richmond Times-Dispatch reports that the company would be collecting the taxes about … 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

Play On! MO Says NO to Tax on (Some) Codes & Credits

In a recent letter ruling, the Missouri Department of Revenue was asked to consider if certain video and virtual-reality game products were subject to that state’s sales and use tax. Specifically, the products at issue in the ruling request were: digital access codes printed on a receipt, which when entered on a website allow a … 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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