Connecticut legislation that would have taxed certain internet sales dies in committee.
New York Expands Definition of Sales Tax Vendor
Effective June 1, 2009, the definition of a sales tax vendor in New York has been amended to include, under certain circumstances, remote sellers of taxable property and services that are affiliated with a business located in the state. Previously,…
California Governor Schwarzenegger Vetoes “”Amazon”” Nexus Provisions
Governor Schwarzenegger vetoed a majority vote tax increase passed by the California legislature after Overstock.com announced that it would pull its affiliate advertising from the State. California lawmakers had proposed a tax on affiliate advertising similar to New York’s “Amazon”…
New York Enacts Budget with Expanded Definition of “Vendor”
A New York affiliate nexus provision expanded the definition of “vendor” to include certain affiliated persons and entities, effective June 1, 2009.
Nexus Presumption Bill Vetoed by Governor in Hawaii
House Bill 1405, that would have enacted a nexus presumption for retailers that enter into an agreement with a resident, under which the resident, for a commission or other consideration, directly or indirectly refers potential customers to the seller, has…
Connecticut Teachers Are Not Representatives and Do Not Create Nexus for Out-Of-State Bookseller
The Superior Court of Connecticut has overturned the Commissioner of Revenue Services\’ decision that school teachers who distribute catalogs and books to students and take student orders are \”representatives\” who participate in an in-state \”sales force\” to sell, deliver, and take orders to generate revenue on behalf of an out-of-state company that sells books exclusively to schools.
Rhode Island Enacts its Version of the Amazon Provision Effective June 30, 2009
Rhode Island has amended it’s definition of a retailer to include a retailer who enters into an agreement with a resident, under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by link…
Online Retailers Targeted by North Carolina Legislation
A bill that would enact a presumption of nexus for certain online retailers and extend the sales and use tax to digital products has been introduced in the North Carolina Senate on March 9, 2009. The legislation is basically identical…
Telemarketing Nexus Discussed in Utah
In a private letter ruling, an out-of-state telemarketing firm, with its sole call center in Utah, was determined to have nexus. The Commissioner also concluded that the firm’s clients, who actually sold the service and maintenance contracts, had nexus as…
Internet Auction Listing Service Not Required to Collect Chicago Amusement Tax
A lawsuit filed by the City of Chicago seeking to require an online auction listing service used by third parties to buy and sell event tickets to collect the City’s 8% amusement tax was dismissed. The lawsuit aimed to enforce…
Sales by In-State Affiliate Did Not Establish Nexus for Remote Seller in Washington
The sales made by an in-state affiliate in Washington did not create substantial nexus for the out-of-state company. The out-of-state company was in the business of selling products over the telephone and internet using television infomercials. The in-state affiliate, however,…
U.S. Supreme Court Denies Request to Decide if Non-Sales Acts by Third-Party Creates Nexus in New Mexico
The U.S. Supreme Court has denied review of a taxpayer’s request to determine if the in-state post-sale service activities of a third-party company allow New Mexico to impose gross receipts tax on an out-of-state computer seller’s sales into the state.…
Minnesota Introduces Bills Proposing to Tax Some Internet Sales
The Minnesota House of Representatives and the Minnesota Senate have both introduced bills that are similar to the New York \”Amazon law.\”
New York Supreme Court Dismisses Amazon’s Challenge on New Provision
Amazon.com’s lawsuit challenging New York’s new statutory provision concerning Internet retailers has been dismissed. Under the new Commission-Agreement Provision that Governor Paterson signed into law, retailers that solicit business by entering into an agreement with a resident of the state,…
Legislation Introduced to Change Statutory Definition of “”Retailer Engaged in Business”” in California
The definition of a \”retailer engaged in business in this state\” any retailer entering into an agreement with a resident of California under which the resident, for a commission or other consideration, directly or indirectly refers potential customers of tangible personal property.
Chicago Seeks Uncollected Taxes from Online Ticket Brokers
Chicago is seeking to collect unpaid amusement taxes on tickets being sold by online ticket brokers.
New York Redefines the Term Vendor
The New York State Department of Taxation and Finance released new rules regarding who is presumed to be a vendor, particularly pertaining to online retailers. The new rule states that merely placing an advertisement via a link on a representative’s…
California SBE and Barnes & Noble.com Reach Settlement
On May 29, 2008, a resolution was reached between the California State Board of Equalization (SBE) and Barnes & Noble.com, canceling two tax determinations against Barnes & Noble.com and waiving claims for past sales and use taxes, interest, and penalties.…
No Nexus Created by In-State Employee Hired in Virginia
In response to a taxpayer inquiry, the Virginia Department of Taxation ruled on the tax obligations of an energy service company that assists customers in selling their unused electricity back the energy grid. The company owns and manages a software…
Illinois Examines Nexus Test for Tax Collection Liability
The Illinois Department of Revenue released a General Information Letter (\”GIL\”)examining when a business would be considered \”a retailer maintaining a place of business in Illinois\” and therefore subject to use tax registrations and collection liabilities.
No Tax Collected on Out-of-State Drop Shipments to Florida
In a recent Technical Assistance Advisement, the Florida Department of Revenue has determined that no tax need be collected when an unregistered, out-of-state dealer purchases merchandise from a registered out-of state supplier (drop-shipper), but directs the supplier to ship the…
Overstock.com Contests New York Tax on Internet Sales
Overstock.com has filed a lawsuit in New York Supreme Court, claiming that a recent New York statutory provision, which requires Internet retailers with no physical presence in the state to collect and pay sales and use tax on purchases made…
Retailer with Substantial Nexus in Idaho Defined
This legislation amends section 63-3611 of the Idaho Code to provide that a “retailer engaged in business in this state” be defined as any retailer with substantial nexus in this state, and creates a new section 63-3615A of the Idaho…
Attendance of Texas Trade Show Establishes Nexus for Use Tax
By attending trade shows in Texas to introduce and demonstrate dental equipment for the purpose of selling them in Texas, an out-of-state seller had the required physical presence in Texas to establish substantial nexus with the state. As a result,…