Recent Survey Suggests 17 States Have Amazon Nexus Type Laws!??
If you are impacted by New York’s, Rhode Island's or North Carolina's “Amazon” nexus law, then you will want to read the following.
According to BNA's 2010 Survey of State Tax Departments and a recent BNA State Tax Blog post, 17 states indicated that an Amazon-type arrangement with an in-state affiliate would trigger nexus if the affiliate was paid less than $10,000 during the year.
Only 3 states currently have "Amazon" nexus statutes on their books, New York, North Carolina and Rhode Island. Each of their statutes have sales thresholds of either $10,000 or $5,000.
The additional 14 states that said their current statutes would include Amazon-type arrangements are: Arizona, the District of Columbia, Florida, Iowa, Maryland, Missouri, Nevada, New Mexico, North Dakota, Pennsylvania, South Dakota, Tennessee, Texas, and Washington.
This is very troubling.
These states are in essence saying that no "new" statute is necessary to impose nexus for Amazon-type arrangements. They are also saying that this nexus threshold is retroactive since it has always been in place (???).
We will have to wait and see what action these 14 states take to impose this "unspoken" policy or position.
If you are a remote retailer or affiliate, please be aware that states are on the attack.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.