Internet Sales Tax Legislation

Alabama

DATE: 12/7/09 The state's Department of Revenue is putting out a recommendation this month encouraging legislators to propose an Internet advertising tax.

Alaska

DATE: 4/4/11 Arkansas SB738 has been passed in both of the houses of the legislature and has been sent to the governor.

Arizona

DATE: 3/8/12 Arizona - Arizona S.B. 1338 WAS DEFEATED!! On Thursday, March 8th, the Senate voted 20-8 vote against the bill. Media reports coming out of Arizona are that the some Arizona Senators felt the bill was flawed, that it targeted one company - Amazon.com, and that it would dissuade other businesses from relocating to the state.

DATE: 1/28/12 Arizona S.B. 1338 (Introduced by Arizona Senators Al Melvin and John McComish, and Representatives Justin Olson and J.D. Mesnard on January 28, 2012)  S.B. 1338 expands the definition of  a "retailer" to include any person who makes sales of tangible personal property that are for storage, use, or other consumption in Arizona if any other person maintains a distribution center, warehouse, fulfillment center or similar place of business within Arizona that facilitates the delivery of property sold by the person to the person's customers.  S.B. 1338 also states that the presumption of nexus created by owning or maintaining such property is rebuttal by demonstrating that the activities conducted by the person maintaining the distribution center, warehouse, fulfillment center or similar place of business are not significantly associated with the person's ability to establish or maintain a market for the person's sales in Arizona. This Arizona proposal cleared the Senate Commerce Committee on February 8, 2012 and is currently pending in the House.

DATE: 2/28/11 Arizona Affiliate Nexus Tax

HB 2551 was introduced on 02/02/11 by Representative Weiers. It is modeled after the New York style affiliate nexus tax. This will impact Arizona affiliates and out-of-state merchants who do not have a physical presence in the state.

The House Commerce Committee heard the bill on Wednesday February 16th. The state retail association testified, as did two local Arizona retailers, in support of the bill. And Rebecca Madigan from the PMA testified in opposition. As was expected, the bill passed unanimously by this committee, since the bill author also chaired this committee. It now moves to the House Rules Committee, for detailed analysis by the Department of Revenue. It must pass this Rules Committee before being sent to the House floor for debate and vote. This is expected to happen within the next 2 weeks.

Join the Arizona Group if you are an Arizona affiliate marketer who wants to help the fight.

DATE: 2/11/11 HB 2551 was introduced on 02/02/11 by Representative Weiers. It is modeled after the New York style affiliate nexus tax. This will impact Arizona affiliates and out-of-state merchants who do not have a physical presence in the state.

Join the Arizona Group if you are an Arizona affiliate marketer who wants to help the fight.

Arkansas

DATE: 3/10/11 Arkansas has introduced SB738. SB738 would require out-of-state retailers who have Arkansas affiliates that refer at least $10,000 in sales from Arkansas purchasers to collect and remit sales tax.

California

DATE: 8/31/11 Amazon and California Strike a Deal to Delay Sales Tax Collection Until Sept. 2012.  California. Legislative leaders struck a deal with Amazon to delay the collection of sales taxes from California citizens for one year as long as Amazon drops its efforts to combat the state's new tax law. Read the full article.

DATE: 6/28/11 Governor Brown of California has announced he has secured enough votes to pass his budget, including the Affiliate Nexus Tax and 2 related nexus bills: AB 153, AB 155 and SB 234. The law will go into effect immediately upon signing, and he must sign before July 1st, 2011.

DATE: 2/11/11 California Affiliate Nexus Tax, Long Arm Statute

AB 153 and AB 155 have been introduced by Assemblymember Skinner and Calderon, respectively. AB 153 is modeled after the New York bill and is a straight affiliate nexus tax. AB 155 is more broad reaching, giving the tax collection agencies authority to define who does and doesn't establish nexus. Both will likely result in the same outcome if passed: out-of-state retailers will terminate their California affiliates. This will impact California affiliates and out-of-state merchants who do not have a physical presence in the state.

Join the California Group if you are a California affiliate marketer who wants to help the fight.

DATE: 10/15/10 The California budget was passed by the legislature and signed by the governor and the affiliate nexus tax did not make it this year!

This was an extremely difficult fight. It took a huge effort by California affiliate marketers, and support from organizations like the California Taxpayers Association. Many thanks to all the superstars who put in the extraordinary time, resources and effort.

This issue will come back again in January, when the legislature is back in session. The proponents are extremely active and well funded, and will keep up the fight. So get some rest but we're going to need your help again next year. Great job PMA!!

DATE: 8/5/10 Yesterday the Budget Conference Committee met to vote on various tax propositions to include in the budget. Unfortunately, the voted FOR the affiliate nexus tax. This is despite assurances from a couple of committee members that there were no plans to pursue it. What does this mean? It will most likely be put into some variation of a budget bill and sent to the state Assembly and Senate to be voted on. It also means we will have to fight very hard to get it stopped in the legislature.  Join the Google Group.Sign the PMA petition.

DATE: 7/6/10 Both houses of the state legislature, the Assembly and the Senate, have adjourned for the summer. They are adjourning before there is an approved budget and it is unclear which groups or committees will be formulating budget proposals. The legislators have been instructed to spend their time in their district offices for the next 30 to 60 days, but are asked to be within 24 hours from Sacramento, so they can return if there is an emergency session. The Budget Conference Committee has not revisited the issue of use tax collection or ad tax proposals since it was first discussed 2 weeks ago. It is unclear if they will pick up that issue, when they will meet again, or if another group will consider it.

The good news is that the legislators who have been involved in budget issues are familiar with the issues and seem to understand the negative impact of the ad tax on affiliate marketers. The bad news is we don't know who will be considering the issue in the future. Please stay tuned.

DATE: 4/19/10 A new bill, AB 2078, has been introduced. This is a Big Brother Sales Tax bill, requiring remote merchants to report back to the state on all purchases made by their California customers. A hearing is scheduled Monday April 19th. This directly impacts merchants who do not currently collect sales tax from California customers. It could indirectly impact everyone if it causes people to stop buying online lest their privacy is violated. More information can be found here.

DATE: 3/12/10 California's special session ended on Thursday and several tax enforcement measures, including the advertising tax (ABX8 8) failed to make it out of the Assembly. The bill is likely to come back later this year as California seeks avenues to generate additional revenue and decrease its huge budget deficit.

DATE: 2/26/10 There are now two bills in California. The Assembly took all the content from the senate budget bills and duplicated them in assembly bills so they could be amended. The original version of the bill is in ABX8 8 and was referred to Assembly Rules Committee, where it may be referred to Assembly Revenue and Tax Committee. The copy the Assembly made is in the new bill, SBX8 8, which is on the Assembly floor and could be acted on at any time.

Colorado

DATE: 4/4/12 Federal court tosses 2010 Colorado Amazon tax law

A federal court has thrown out a 2010 Colorado law meant to spur online retailers like Amazon to collect state sales tax.

The law had already been temporarily blocked in federal court last year, but U.S. District Judge Robert Blackburn's ruling Friday permanently handcuffs it.

"I conclude that the veil provided by the words of the act and the regulations is too thin to support the conclusion that the act and the regulations regulate in-state and out-of-state retailers even-handedly," Blackburn wrote in his opinion.  Read the article

DATE: 2/11/11 Colorado Repeal of Big Brother Tax

There is an effort underway to repeal the Big Brother Tax passed last year in Colorado. Assisting this effort is a recent ruling by a federal court granting an injunction, relieving out-of-state retailers from having to comply with the state's burdensome reporting requirements. This also protects Colorado consumers' privacy. This will impact merchants who do not have a physical presence in CO.

DATE: 1/28/11 E-retailers win tax ruling in Colorado
A federal judge blocks a law requiring online retailers to report online purchases by Colorado residents to the state for tax enforcement purposes. The DMA has won a preliminary injunction against a Colorado tax-reporting law.  Read the post on the PMA Website.

DATE: 4/22/10 What the Colorado Internet Sales Tax Means to Retailers
As Shop.org's tagline goes, we are the digital division of the National Retail Federation (NRF). This means that we have access to some amazing resources from NRF including Maureen Riehl, a vice president in NRF's government relations department and an expert on Internet sales tax.  The recent law passed in Colorado related to this topic has raised many questions.  Below are some very helpful thoughts from her on what this means to digital retail.  Read More....

- by Scott Silverman, Executive Director, Shop.org 

DATE: 3/11/10 Further Guidance on Requirements on Out-of-State Retailers (Colorado) from Accounting Web.

DATE: 3/10/10 PMA legal POV on Amazon's surprising actions.

DATE: 3/3/10 Amazon has notified Colorado-based members of its affiliate program, that it was ending its business with them "As a result of the new law," Amazon said, "we have decided to stop advertising through associates based in Colorado."

DATE: 2/9/10 All language referring to "affiliates" is being taken out of HB 1193. This "win" is the result of a massive, coordinated effort on the part of the PMA, CO affiliates and many others. Good work PMA!

Connecticut

DATE: 2/11/11 Connecticut Affiliate Nexus Tax

Several bills have been introduced, all with potential affiliate nexus tax consequences, so the risk is perceived to be very high. Significant affiliate participation is going to be needed to fight this bill. This will impact Connecticut affiliates and out-of-state merchants who do not have a physical presence in the state.

Join the Connecticut Group if you are a Connecticut affiliate marketer who wants to help the fight.

DATE: 5/26/10 DEAD: In February, 2010, Senate bill SB 5481 was introduced by the Senate finance committee. The bill was passed by the senate committee and passed by the House. But days before the legislative session was to end, the leaders of the Finance, Revenue and Bonding Committee had a change of heart; they recognized the bill would not protect retailers, would not help the state, but would only harm affiliate businesses. The legislative session ended May 5th without passing the ad tax.

DATE: 5/6/10 The Connecticut legislation ended at midnight without passing the ad tax. This was an extremely difficult fight, and frankly, we thought we were going to lose. Thanks to a small but mighty group of affiliate marketers, and an extremely talented lobbyist, the ad tax was finally defeated.

DATE: 5/3/10 Connecticut may abandon the The chances of survival for a controversial bill to force collection of sales taxes on Internet transactions have become very slim as the regular legislative session nears its May 5 deadline, key lawmakers said Thursday. The problem, according to leaders of the Finance, Revenue and Bonding Committee, is that many legislators fear businesses could be harmed regardless of whether action is taken.  Read the full article, "http://www.ctmirror.org/story/5680/legislators-likely-drop-amazon-law-now by Keith M. Phaneuf, featured on The Connecticut Mirror site.

DATE: 4/19/10 The ad tax, SB 5481 on 3/25/10 is still alive. Next week the bill will be reviewed by the House Finance Committee. A vote or decision will have to be made before May 5th, when the legislative session ends.  The progress of the bill was significantly delayed by the efforts of several affiliate marketers which was highly effective in putting faces behind the issue. But more involvement by Connecticut affiliate marketers is needed. There are still opportunities to reverse the course of this bill, but it takes letters and calls and visits from more affiliate marketers. If you are a Connecticut affiliate marketer, your help is needed. Please register your support here and join a Google group so we can communicate directly.

DATE: 3/25/10 The Finance, Revenue and Bonding committee voted on SB 5481 today and passed the ad tax. However, the progress of the bill was significantly delayed by the efforts of several affiliate marketers who stormed Hartford yesterday to meet with state legislators. This was highly effective in putting faces behind the issue. However, the proponents of the bill also have a large presence, so more involvement by Connecticut affiliate marketers is needed. The session ends in May, so there are still opportunities to reverse the course of this bill, but it takes letters and calls and visits from more affiliate marketers. If you are a Connecticut affiliate marketer, your help is needed. Please register your support here and join a Google group so we can communicate directly.

DATE: 3/16/10 Amazon threatens to fire CT affiliates if RB 5481 is passed. 

DATE: 3/15/10 There was a hearing on March 15, 2010 with the Finance, Revenue and Bonding Committee to debate the ad tax bill (RB 5481).  The committee has not yet voted, but it is expected to pass.

DATE: 3/12/10 A new ad tax bill, Number 5481, was proposed on March 8th in Connecticut. The language in this bill specifies a $2,000 per quarter threshold, which is much lower than the typical $10,000 threshold in other state's ad tax bills. A hearing is scheduled for March 15th. If you are a Connecticut affiliate marketer, your help is needed. Please register your support here and join a Google group so we can communicate directly.  Read the Bill

DATE: 4/4/09 Connecticut's version of the "Affiliate Tax" bill (SB 806) could go before the Senate for discussion very soon! Click here for more information on the bill.

Florida

DATE: 4/19/10 Florida has proposed SB 2552, which is not an ad tax, but a proposal that could lead to some sort of internet sales tax collection scheme. This bill is highly unlikely to go anywhere, it is almost comical in its approach. It proposes that the state allocate money so it can build its own software requiring credit card companies to collect sales tax at the time of product shipment. Credit card processing is a highly regulated industry, encompassing strict guidelines on interaction between merchants and banks, and data protection, consumer protection, and security. The likelihood that a state could interfere with well established, internationally mandated standards is extremely slim.

DATE: 2/18/10 No official bill has been introduced yet, but there is loud "buzz" that one is impending. Stay tuned for more information.

Georgia

DATE: 8/31/12 Georgia's nexus law goes into effect on December 31, 2012. Read the PMA blog post. Here's another link that may be helpful in regard to the Georgia law which is quite comprehensive.  Link to GA legislation (see page 52). Seek the advice from your Tax attorney!

DATE: 3/29/12 Georgia - On Thurs, 3/22, the Georgia General Assembly passed by a vote of 54 to zero, an omnibus tax bill, H.B. 386, which essentially combines a series of recycled proposals into a single large package. One of the many provisions in H.B. 386 is a click-through rebuttable presumptive nexus provision applicable to remote sellers who enter into contracts with in-state marketing affiliates (this provision includes a small seller exception - sales generated by all in-state affiliate web-links must have exceeded $50,000 within the prior 12 month period). From a review of the legislative history, it appears as though Georgia H.B. 993 has been rolled into H.B. 386.  This bill is on its way to Governor Deal's desk.

DATE: 3/21/12 HB-993 would expand the definition of physical location (physical nexus) to include affiliate agreements between Internet merchants and Georgia residents or businesses. Thus any Internet merchant with affiliates in Georgia would now be required to collect sales tax on purchases made by Georgia residents. Passed in the House and Senate. Governor Deal is a supporter and is expected to sign it. The effective date is still being debated, but could go into effect as early as June, 2012.

DATE: 9/1/10 The State of Georgia has formed Special Council on Tax Reform and Fairness for Georgians and they will host a series of fact finding sessions. They are considering an affiliate nexus tax. The Council published a List of Tax Issues for the Council Consideration which includes the affiliate nexus tax.

We need the help of affiliate marketers in Georgia to fight this proposal from going forward. If you are an affiliate marketer living in Georgia, please join this Google Group, to learn more on how you can help. Click here to read more about Georgia legislative updates.

DATE: 4/19/10 While an ad tax bill has not been proposed, SB 512 is another bill looking to collect internet sales tax.  This bill might be called the "Bounty Hunter Bill".   It authorizes the state to pay contingency fees to lawyers who help the state successfully sue remote retailers to enforce collection obligations under creative assertions of current law. It is unclear if affiliate nexus is a qualification. The senate passed this bill on Friday March 28th. Other states and cities are using similar bounty hunter arrangements when working with plaintiff's attorneys to sue online travel companies over occupancy taxes on the service fees collected from remote travelers.  There are over 60 such lawsuits underway now.

DATE: 4/5/10 Bill language has been added to the placeholder bill GA SB 1221. The language is for support of the streamlined sales tax and not the ad tax. There is another placeholder bill but it isn't likely they will introduce an ad tax when they're introducing streamlined.

DATE: 3/25/10 Bill language has been added to the placeholder bill HB 1221. The language is for support of the streamlined sales tax and not the ad tax. There is another placeholder bill but it isn't likely they will introduce an ad tax when they're introducing streamlined. We will continue to track this activity until the other placeholder bill is assigned, killed or when the session ends.

DATE: 3/12/10 Placeholder bills were introduced, that may or may not include ad tax language.

DATE: 2/25/10 Georgia House Ways and Means and Appropriations chairs just introduced bills, amending the sales and use tax. Currently these are just "place holder" bills, but could include nexus language in the future. Please visit the PMA's Georgia page for information on the bills.

Hawaii

DATE: 3/10/11 Hawaii's HB 1183 passed the House on 3/8/11 and has been sent to the Senate for a vote.

DATE: 2/11/11 Hawaii Affiliate Nexus Tax

Representative Choy introduced HB 1183. Two years ago a bill was passed by the legislature but vetoed by Governor Lingle. There is now a new governor who will need convincing if we can't block in the legislature. This will impact Hawaii affiliates and out-of-state merchants who do not have a physical presence in the state.

Join the Hawaii Group if you are a Hawaii affiliate marketer who wants to help the fight.

DATE: 7/2/09 The governor vetoed this bill. It is possible it will be sent to a special session on 7/15 but would require a 2/3 majority in both the House and Senate to overturn her veto on the bill.

Illinois

DATE: 3/10/11 As anticipated, the Governor of Illinois has decided to sign HB3659 and new nexus law will take effect on July 1, 2011. HB3659 is similar to the laws passed in other states. It will now require some out of state merchants (non-Illinois merchants) to collect and remit sales tax on purchases made by Illinois residents if the merchant has Illinois affiliates or publishers.  Governor Pat Quinn is seeking to balance his state's budget, level the playing field for in-state merchants and, improve collection of sales tax through improved enforcement of existing sales and use tax laws. More info

DATE: 2/11/11 Illinois Affiliate Nexus Tax

The Affiliate Nexus Tax passed the house and senate in a frighteningly short amount of time. It is currently sitting on the Governor's desk, awaiting signature or veto. We have been in regular communication with the governor's staff, as have the proponents of the bill. We expect he will take up until the March 11 deadline to make his decision. This will impact Illinois affiliates and out-of-state merchants who do not have a physical presence in the state.

Join the Illinois Group if you are an Illinois affiliate marketer who wants to help the fight.

DATE: 1/4/11 The Illinois House has just added 'affiliate nexus tax' language to Amendment 3 of HB 3659. This was an appeasement to in-state brick and mortar merchants. We must notify key decision makers immediately, to stop this bill. It is currently in the Senate, where it will be voted today or tomorrow. If it passes, it will be sent to the House for a vote.

If you are an Illinois Affiliate marketer, please sign this petition to help fight the Affiliate Nexus Tax. This information will be included with the petition we provide to Illinois legislators, but will not be made publicly available by the PMA. Addresses are required to verify that you are a resident of Illinois and it helps legislators identify their constituents. Thank you!

Here's a copy of the letter going along with the petition. Please sign the petition by 10am CST Wednesday January 5th - so it can be delivered in time!

DATE: 4/19/10 No change from last update: The Senate Revenue Committee had a hearing discussing the ad tax bill, SB 3533, Thursday March 4th. Twenty one affiliates attended the hearing and Brian Littleton was chosen to be the only testimony. The bill has been 'held over', meaning the committee did not vote to move it forward. They may consider revising it in some way and return it to the committee. This is somewhat good news, it means the legislators are taking the affiliate point of view seriously.

DATE: 2/11/10 Sen. Jeffrey M. Schoenberg is proposing legislation that targets out-of-state merchants using affiliates to establish nexus. It is called SB 3353, click here to read the full text of the bill. Please take a few minutes to show your support for the fight against this tax by visiting the PMA's web site and registering. The PMA will send you updates regarding the status of this legislation in Illinois and provide guidance on how you can participate in local activities.

Kansas

DATE: 2/15/12 Kansas S.B. 430 - (Introduced by the Senate Ways and Means Committee on February 15, 2012)  S.B. 430 is a click-through nexus provision with a small seller exception, which provides that a presumption of nexus is created for a retailer that enters into an agreement with one or more Kansas residents under which the resident, for a commission or other consideration refers potential customers, whether by a link on a website, by telemarketing, by an in-person oral presentation, or otherwise, to the retailer, if the cumulative gross receipts from sales by the retailer to customers in the state who are referred to the retailer by all residents with this type of an agreement with the retailer is in excess of $10,000 during the preceding 12 months. The presumption of nexus can be rebutted by submitting proof that the residents with whom the retailer has an agreement did not engage in any activity within the state that was significantly associated with the retailer's ability to establish or maintain the retailer's market in the state during the preceding 12 months. If passed, this affiliate nexus law would become effective 90 days after enactment. S.B. 430 was referred to the Senate Committee on Assessment and Taxation on February 16, 2012, where it is currently pending.

Maryland

DATE: 4/14/10 The Maryland 2010 legislation session ended at 11:59:59pm last night, and the ad tax was not included in the final budget package.

DATE: 4/4/10 The ad tax, SB 824, was heard  on April 4th 2010, in front of the Senate Budget and Taxation committee. The committee did not yet vote; they are expected to vote within a week.

DATE: 3/29/10 No change from last update: The ad tax, SB 824, was heard Wednesday in front of the Senate Budget and Taxation committee. The committee did not yet vote; they are expected to vote within a week.

DATE: 3/18/10 The ad tax, SB 824, was heard in front of the Senate Budget and Taxation committee yesterday. The committee did not yet vote; they are expected to vote within a week.

DATE: 3/16/10 The Senate Budget and Taxation Committee will hear the Ad tax bill,  SB 824, on Wednesday March 17, 2010; the hearing is scheduled for 1:15pm.

DATE: 3/12/10 The Senate Budget and Taxation Committee will hear SB 824, the ad tax, on Wednesday March 17th; the hearing is scheduled for 1:15pm.

If you are a Maryland affiliate marketer, please register your support here so we can contact you directly with updates, and provide letter templates and talking points. You can also join a Google Group here.

DATE: 3/5/10 A hearing on the advertising tax bill in Maryland has been scheduled for March 17th. Maryland publishers can help oppose this tax in several ways: 1) If you haven't already registered on the PMA site; click here to join today; 2)You can also join a group formed for all Maryland publishers to get the latest news; and 3) You can learn more here. Show your opposition to this proposed legislature by emailing Senator Madaleno atrichard.madaleno@senate.state.md.us.

Minnesota

DATE: 1/24/12 Minnesota H.F. 1849 - (Introduced by Minnesota Representatives Greg Davids, Bev Scalze, and Tina Liebling an January 24, 2012)   H.F. 1849 is another click-through nexus provision with a small seller exception which defines a 'solicitor' as a person who solicits business for the retailer and provides that a retailer is presumed to have a solicitor in this state if it 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 a link on an Internet Web site, or otherwise, to the seller and the total gross receipts from sales to customers located in the state who were referred to the retailer by all residents with this type of agreement with the retailer is at least $10,000 in the 12-month period ending on the last day of the most recent calendar quarter before the calendar quarter in which the sale is made. This presumption of nexus is rebuttal if the resident with whom the retailer has an agreement did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of the U.S. Constitution during the 12-month period in question. If passed, this affiliate nexus law would become effective on June 30, 2012. Upon introduction, H.F. 1849 was referred to the House Committee on Taxes where it is currently pending.

DATE: 2/28/11 Minnesota Governor's Budget Includes Nexus Tax

On February 15, Minnesota Governor Mark Dayton submitted a budget that included a New York-style affiliate nexus tax. The next steps in the political process include both houses of the state legislature to propose and vote on their own budgets. The Republican Party chairs have already come out publicly and opposed the governor's tax increases.

If you are a Minnesota affiliate marketer we need your help to fight this legislation. The only way we can beat this is with the help of in-state affiliate marketers - legislators will listen to you!  Please join our Minnesota Google Group to learn more.

DATE: 5/21/09 HF2323 has been vetoed by the Governor.

Mississippi

DATE: 2/7/12 Mississippi H.B. 135 - (Introduced by Mississippi Representative Jessica Upshaw on February 7, 2012) H.B. 135 is a click-through nexus proposal with no small seller exception, which states that a presumption of nexus is created for a vendor that enters into an agreement with a resident of the state under which the resident, for a commission or other consideration refers potential customers, whether by a link on a website or otherwise, to the person.  This presumption of nexus is rebuttal by proof that the resident with whom the person has an agreement did not engage in any solicitation in the state on behalf of the person that would satisfy the nexus requirement of the U.S. Constitution.  If passed, this affiliate nexus law will be effective July 1, 2012. H.B. 135 was referred to the House Ways and Means Committee on February 7, 2012 where is it currently pending.

DATE: 2/5/10 SB 2927 - The state website reports that SB 2927 died in committee on 2/2.

Missouri

DATE: 3/1/12 Missouri H.B. 1569 - (Introduced by Missouri Representatives Doug Funderburk, Bill White and John McCaherty on January 31, 2012)  H.B. 1569 is also a click-through nexus provision with a small seller exception that specifies that soliciting business through an independent contractor or other representative includes a business that enters into an agreement with a resident of Missouri for a commission or other consideration and the resident refers potential customers by a link on the internet or otherwise to the seller if the cumulative gross receipts from sales by the seller to customers in Missouri who are referred by all residents with agreements with the seller exceeds $10,000 during the preceding four quarters. The presumption of nexus may be rebutted by proof that the resident with whom the seller has an agreement did not engage in any solicitation in the state on behalf of the seller that would satisfy the nexus requirement of the U.S. Constitution during the four quarterly periods in question.  If passed, this affiliate nexus law will be effective August 28, 2012.  The House Committee on Tax Reform voted "do pass" of H.B. 1569 on March 1, 2012.  The bill was immediately referred to the House Committee on Rules where it is currently pending.

DATE: 9/9/09 Missouri may now consider having an affiliate program with participants that reside in the state of Missouri as constituting a physical presence. Please consult with your tax advisors regarding any tax liability questions this might raise. The Missouri Department of Revenue has released this page that contains information used by the state to determine when a vendor has sufficient nexus.

Nevada

DATE: 3/2/10 Great news! The special session that was convened has adjourned and no tax legislation was introduced.

New Jersey

DATE: 7/16/12 New Jersey Governor Chris Christie Embraces Online Sales (WSJ Blog).  Online retailers will not be required to start collecting sales taxes until July 2013. Read the article

DATE: 3/19/12 The New Jersey Assembly passed two other sales tax measures and sent them to the state Senate. Bill No. A-2003 would establish that an online retailer has a nexus in the state if it got online sales through another entity based in New Jersey, such as a blog or other type of affiliate web site that refers customers to the retailer. Bill No. AR-69 urges the U.S. Congress to enact federal legislation that would allow states to mandate sales tax collection by online and catalog retailers regardless of whether they had nexus in a state. Read this article for more information.

DATE: 1/17/12 New Jersey S.B. 905 – (Introduced by New Jersey Senator Raymond Lesniak on January 17, 2012) S.B. 905 is a broad affiliate nexus proposal which expands the definition of a "seller" to include a person who makes sales of tangible personal property through a subsidiary or other related entity, to purchasers in New Jersey by mail, telephone, the internet or any other media, and who has a contractual relationship with an entity to provide and perform delivery, installation, assembly, or maintenance services for that person’s purchasers within the state. The proposed legislation does not include a traditional click-through provision, therefore, the proposal does not include a small seller exception nor does it include rebuttal presumption language.  Upon introduction, S.B. 905 was referred to the Senate Economic Growth Committee, where it is currently pending.

New Mexico

DATE: 2/11/11 New Mexico Affiliate Nexus Tax

It appears the sponsor of HB 102 has pulled the bill from the agenda, even though the companion bill was passed by the senate (SB 95). This could mean they've received our letters and realized was a bad idea this bill is for New Mexico. Or there are other considerations we haven't yet learned.

DATE: 2/5/10 Bill HB 50 is still officially classified as being in pre-file status, and is not expected to move forward.

New York

DATE: 4/9/08 New York Tax Law 1101(b)(8)(vi) requires affected businesses to register and start collecting taxes by June 1st. The state estimates the law would generate $50 million in the current fiscal year. The law applies to companies that do more than $10,000 worth of business in the state. 

North Carolina

DATE: 7/6/10 The ACLU has filed suit against the state of North Carolina, intervening in the lawsuit previously filed by Amazon. In an attempt to force nexus, North Carolina has approached several out-of-state merchants, including Amazon, who terminated affiliates when the ad tax passed. The state is requiring detailed purchase information back to 2003, in an attempt to collect back sales tax, claiming these merchants already had nexus established if they had affiliates even prior to the ad tax being passed. As part of the audit, the state is requiring personally identifiable information on each purchase.

"The Constitution does not permit government agencies to conduct such sweeping collections of our personal and private information," said Aden Fine, staff attorney with the ACLU Speech, Privacy and Technology Project. "Disclosing the purchase records of thousands of Amazon customers would violate their constitutional rights to read and purchase the lawful materials of their choice, free from government intrusion."

DATE: 8/10/09 The Governor of North Carolina signed that state's budget on Friday. This new budget includes nexus language making North Carolina the third State to include language (joining New York and Rhode Island) specific to online marketing and creating a nexus due to the referrer's home State.

Oklahoma

DATE: 9/1/10 On August 26, 2010, the Oklahoma Tax Commission enacted emergency regulations under state law HB 2359, a new law that includes sales tax obligations for out-of-state retailers, which went into effect on July 1, 2010. The regulations must now be approved by the governor of Oklahoma (to whom they were submitted on August 26th) before they go into effect. The Direct Marketing Association, which "worked with the Commission to communicate concerns with certain provisions and to explain compliance problems," announced the enactment of the regulations, and plans to post them on its Web site when they are available.

As with Colorado, Oklahoma is seeking to increase collection of use taxes, similar to sales taxes but levied on purchases shipped from out-of-state retailers to Oklahoma residents. In Oklahoma's case, the approach includes requiring out-of-state retailers to provide "readily visible" written notice to Oklahoma consumers on the retailer's Web site or catalog and invoices that those consumers owe use taxes on their purchases, and prohibiting advertising that no taxes are due for the purchase. (Online auction sites are exempt only from the invoice requirement.) The law also establishes a "Retailer Compliance Initiative" designed to encourage and assist out-of-state retailers in voluntarily collecting the use tax directly.

DATE: 6/1/10 On Tuesday May 25th, just 4 days before the 2010 legislative session was scheduled to close, a 'Big Brother Sales Tax' bill was introduced, HB 2359. After last minute frantic lobbying and advocacy intervention by several organizations, including the PMA, the bill was significantly modified and passed. The final version of the bill removed all reporting requirements. Simply stated, it requires remote merchants to notify Oklahoma purchasers of their personal obligation to pay state use tax at the point of checkout or payment. And it provides some guidelines for voluntary collection of sales taxes by out-of-state merchants. This act is slated to go into effect July 1, 2010 although there is some language in the bill stating parts of it won't be effective until regulations are provided. Watch for other updates on the PMA Web site.

Pennsylvania

DATE: 9/5/12 PMA on Pennsylvania: It should be noted that this information was relayed to the PMA's attorney and the PA DOR is unlikely to publish this as a written clarification. This does not constitute legal advice. If you are an advertiser with publishers in Pennsylvania, or a publisher based in Pennsylvania, you are strongly advised to seek legal counsel.  Read this PMA post

DATE: 7/17/12 Pennsylvania Delays Online Tax Compliance Until September (Revenews). Read the article

DATE: 1/27/12 The Department of Revenue extended the deadline by which remote sellers with physical presence in Pennsylvania must become licensed and begin collecting sales tax. These steps now must be completed by Sept. 1.

DATE: 12/1/11 In Sales and Use Tax Bulletin 2011-01 published December 1, the DOR "reminded" remote sellers that have nexus with the Commonwealth that they must collect sales tax on "Internet, catalog and telephone sales" to Pennsylvania resident individuals and businesses. Although the Bulletin applies to all businesses that remotely sell to Pennsylvania resident individuals and businesses, the DOR's announcement is specifically aimed at online retailers. More info here.

Rhode Island

DATE: 2/11/11 Rhode Island Repeal of Affiliate Nexus Tax

House bill H 5115 was introduced on January 25th, it is a bill to repeal the Affiliate Nexus Tax. This is great news for affiliates who were terminated two years ago after the law passed. There was a repeal attempt last year that failed to gain momentum; let's hope we can bring this one to pass this year. This will impact Rhode Island affiliates and out-of-state merchants who do not have a physical presence in the state.

Join the Rhode Island Group if you are a Rhode Island affiliate marketer who wants to help with this repeal.

DATE: 4/19/10 No change from last update:A hearing was tentatively scheduled 3/18/10, to hear H 7071, the repeal bill to reverse the ad tax. It was postponed until further notice.

DATE: 3/25/10 No change from last update: A hearing was tentatively scheduled 3/18/10, to hear H 7071, the repeal bill to reverse the ad tax. It was postponed until further notice.

DATE: 3/18/10 Hearing for  H 7071, the repeal bill to reverse the ad tax, was postponed until further notice.

DATE: 3/12/10 A bill, HB 7071, has been introduced to repeal the ad tax. Awaiting word from political advisers on progress of this bill.

DATE: 6/29/09 Nexus law has passed. Both houses of the legislature passed the budget bill by veto-proof margins.

South Carolina

DATE: 8/5/10 A commission has been formed, the South Carolina Tax Realignment Commission (TRAC) to evaluate various tax proposals.The commission was created jointly by the legislature and the governor, and includes politicians and members of the business community.  This commission has until November 15 to submit its recommendation. It will be taking public comments at a hearing scheduled for August 13th.  Join the Google Group.  Sign the PMA petition.

South Dakota

DATE: 3/29/12 Effective July 1, 2011 - South Dakota will impose a notice requirement. It requires out-of-state retailers to notify their South Dakota customers that they owe use taxes on their purchase. Although NOT required to collect sales tax customers still owe the tax and are suppose to include it as "use" tax on their state income tax returns, but few people do and it's almost impossible to enforce. Under the law, online sellers that do not collect sales tax are required to provide clear notice to consumers during the checkout process that a use tax is due.  The law applies to retailers that have more than $100,000 in total gross yearly sales in South Dakota.

DATE: 2/11/11 South Dakota Big Brother Tax

There are two proposals, SB 0146 and SB 0147, which are attempting to establish nexus or reporting requirements for out-of-state merchants, similar to a bill passed in Oklahoma last year. This impacts merchants without physical presence in SD.

Tennessee

DATE: 3/10/11 Tennessee has introduced HB 1912/SB 1489. HB 1912/SB 1489 would require out-of-state retailers who have Tennessee publishers that refer at least $4,800 in sales from Tennessee purchasers to collect and remit sales tax. If passed, the legislation would become effective on July 1, 2011.

DATE: 4/19/10 Tennessee has submitted bill SB 1741/HB 1947, a Big Brother Sales Tax bill that copies the Colorado sales tax reporting bill. This bill would require out-of-state merchants to report back on all sales made to Tennessee consumers. It will have a direct impact on remote retailers who do not collect sales tax, and since it violates consumer privacy, it may have a chilling effect on internet sales overall.

DATE: 4/6/10 Tennessee submitted bill SB 1741/HB 1947 which copies the Colorado sales tax reporting bill. This bill would require out-of-state merchants to report back on all sales made to Tennessee consumers. This isn't like the typical ad tax that directly targets affiliate marketing, but it can have a serious impact on online merchants. A Finance, Ways and Means committee meeting is scheduled tomorrow, but it doesn't appear they will take public testimony.

Texas

DATE: 6/29/12 Advocates for a level playing field between traditional brick-and-mortar retailers and their online-only competitors are celebrating a huge win this week as online-only retailer Amazon.com begins to collect the state sales tax in Texas starting July 1. "A true free market is devoid of government preferences and special treatment," said Sandy Kennedy, President the Retail Industry Leaders Association. "Texas has made a powerful statement that its time to end special treatment for online retailers and close the sales tax loophole that gives companies like Amazon an artificial leg up on Main Street retailers." Read the full article

DATE: 4/5/11  Affiliate tax bill SB 1798 has been introduced in Texas . This bill would require out-of-state retailers who have Texas affiliates that refer at least $10,000 in sales from Texas purchasers to collect and remit sales tax. If this legislations passes, it would become effective on September 1, 2011.

DATE: 12/7/10 The PMA added Texas to the list of states that they are following that will likely consider affiliate nexus legislation in 2011. So far, that list includes South Carolina, Connecticut, Georgia and California, because of recent quotes from legislators or the formation of panels to assess various tax proposals.

Vermont

DATE: 2/11/11 Vermont Affiliate Nexus Tax

Once again, Vermont is attempting to collect tax from internet sales, through an Affiliate Nexus Tax (HB 0143) and some other potential ambiguous attempt (SB 0054). This will impact Vermont affiliates and out-of-state merchants who do not have a physical presence in the state.

Join the Vermont Group if you are a Vermont affiliate marketer who wants to help the fight.

DATE: 2/17/10

Your immediate response is needed to let the Vermont House Ways and Means Committee know that you are opposed to the internet advertising tax being proposed in your state.

DATE: 2/5/10 Bill H 661 has been introduced but has not moved into the House or Senate yet. The PMA is reporting that they do not expect it to move forward.

Virginia

DATE: 8/6/10 There was a TRAC Commission hearing on 8/6 to hear public testimony on their tax proposals. As we previously posted, two affiliates testified, Jenny Martin and Ken Lochridge, along with Rebecca Madigan from the PMA. The commission specifically mentioned the affiliate nexus tax proposal didn't sound viable, although some commissioners still expressed support. Here are two articles that mentioned the hearing:

• The Post and Courier: Tax panel hears pleas for relief

• The State, South Carolina’s Home Page: Tax changes: Commission members consider objections

DATE: 3/13/10 We just received hopeful news: the Virginia budget conferees did not include the ad tax language in the budget bill they submitted today. There is one more step to go! The governor needs to sign the bill into law. We do not expect him to ask for the ad tax to get put back, but this isn't over until the budget is signed.

DATE: 3/12/10 The ad tax bill, SB 660, was tabled by the House Finance committee. It will officially die when the legislative session ends on March 13th.

DATE: 3/4/10 Good news! The bill was set aside for later consideration as of 3/1/10.