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Tuesday, November 22, 2011

More on affiliate nexus - Amazon-style + possible federal action

If you are looking for background on the affiliate nexus ("Amazon" type) legislation that has been enacted in varying forms in eight states to date, as well as legal issues and compliance considerations, see my article in the CA Bar Tax Network newsletter for November 2011:
From Website Links to Collection Points

Also, don't miss the National Retail Federation's ad - "Why you should care about online sales tax legislation." The ad encourages retailers not involved in online sales to support federal legislation to enable states to require remote vendors to collect sales tax. The NRF notes that states would gain about $24 billion. Here is a line I like: "It’s NRF’s view that businesses need a 21st century tax system that works with 21st century retail. And now is the time for Congress to act."

NRF notes that there are 3 federal proposals but does not take a stand on any particular version. Instead, NRF notes: "NRF strongly supports federal legislation that would make it easier for states to require all Internet retailers to collect sales tax in the same way as local stores."

I think something is going to pass - probably S. 1832 (112th Congress) because it helps states that adopted the SSUTA as well as states that have not and probably will not. If non-SSUTA states enact the simplifications specified in S. 1832, they would be able to get remote vendors (but not de minimus ones) collect sales tax. With states eager for funds and Congress unable to give them much given federal budget problems, passing S. 1832 would be a way to indirectly get money to states.

What do you think?

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