Idaho Enacts Click-Through Nexus Legislation

Effective July 1, 2018, Idaho has enacted click-through nexus legislation that amends the definition of “retailer engaged in business in the state” for purposes of collecting and remitting Idaho sales and use tax to include:

• Any retailer that has an agreement, directly or indirectly, with one or more persons engaged in business in Idaho which, for a commission or other consideration, the persons refer potential purchasers to the retailer directly, whether by a link on an internet website, written or oral presentation, or otherwise; and
• The cumulative gross receipts from sales by the retailer to purchasers who are referred by all retailers engaged in business in Idaho with such an agreement are greater than $10,000 during the immediately preceding 12 months.

A retailer may rebut the presumption that it is soliciting sales in Idaho through persons in this state with whom it has such an agreement. The state tax commission will deem the presumption rebutted if the retailer is able to establish that no persons as described above engaged in any solicitation in Idaho on behalf of the retailer that would satisfy the nexus requirement of the U.S. Constitution during the 12-month period in question. The state tax commission may promulgate rules to administer the provisions of this subsection. (H.B. 578, Laws 2018, effective July 1, 2018)