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 on an internet web site, or otherwise, to the seller. This presumption will only apply if the cumulative gross receipts from sales by the retailer to customers in the state who were referred by these resident solicitors are in excess of $5,000 during the preceding four quarterly periods ending on the last day of March, June, September, and December. The presumption can be rebutted by proof that the resident solicitor did not engage in any solicitation that would satisfy the U.S. Constitution during such four quarterly periods. (H.B. 5983, Laws 2009, effective as noted)

Posted on July 7, 2009