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Sales & Use Tax Tips for February 2011
THE MEANING OF NEXUS CONTINUES TO TRANSFORM ACROSS THE COUNTRY
"Click Thru Nexus", Is It Here To Stay?
"Click thru nexus", also known as the Amazon bill, has been popping up in proposed and enacted legislation in states across the country; Arizona, California, Connecticut, Hawaii, Illinois, New York, Rhode Island and South Dakota just to name a few. Generally statutes presume out-of-state sellers need to collect sales and use tax when they enter into agreements with in-state residents that refer customers using Internet website links and meet minimum sales thresholds.
Due to this type of legislation, many out-of-state sellers now find themselves having to re-evaluate various states' rules and regulations to determine whether the states they are doing business in have passed such a statute and whether they now could be deemed to have nexus and thus a sales and use tax filing obligation.
The good news is that the opposition battle to repeal "click thru nexus" legislation has also begun, albeit slowly. Some state legislatures are now proposing bills to repeal and/or effectively put an end to the far reaching arms of many tax departments. Whether these bills will pass and spread across the country, as did the Amazon bill itself, remains to be seen. However, this means companies will need to stay on top of the legislators' activities not only so the business can remain in compliance, but to determine if filing continues to be necessary in these so called "click through nexus" states.
To learn more about how we can help with the following issues, please Contact us today:
Assistance with proactive minimization of prior period sales/use tax liabilities
Help with nexus questions and issues
Other sales and use tax related questions.
Or call 1-888-466-2829 to speak with an Olivier &
Associates Sales and Use Tax professional for a no-obligation consultation about your Sales & Use Tax issues.
Please click here for more Sales Tax Tips or visit our website at www.oatax.com for information. For additional insight on common sales tax concerns, please see the Did You Know? section of our website.
* This tip is intended to provide general information only and is not to be considered as a substitute for professional advice.
