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Completely Compliance: Click-Through and Affiliate Nexus Update

by DMA Staff | May 03, 2016
Completely Compliance Click-through and Affiliate Nexus Updates

Many states are continuing to review and establish how their state handles click-through, affiliate and economic nexus.

Rhode Island H.B. 7375: In January 2016, the Remote Sales Tax Collection Act addresses economic and affiliate nexus to include the definition of doing business as “an office, distribution facility, salesroom, warehouse, storage place, or other similar place of business, including the employment of a resident of this state who works from a home office in this state.” as well as “Engaging in, either directly or indirectly through a marketplace provider, referrer, or other third party, direct response marketing targeted at this state.” REFERENCE

Mississippi S.B. 2052: Also introduced in January 2016, Mississippi tried to redefine their definition of retailer “to include a person who facilitates the sale of tangible personal property that belongs to a third party…” However, the proposal died in committee in February. REFERENCE

South Dakota S.B. 106: Passed in March, remote sellers who electronically sell tangible personal property into South Dakota shall remit sales and use tax to the state as if the seller had physical presence in the state. Various different gross receipt thresholds must be met in order to be liable. REFERENCE

Please do not hesitate to contact your local DMA office should you have specific questions or requests.

Completely Compliance is a quarterly e-newsletter exclusively for clients and employees of DMA. It is intended to provide relevant sales/use tax news, events, and information. As such, this e-newsletter should be used for general informational purposes only, and not as a substitute for consultation with professional tax, legal, or other competent advisors. Before making any decision or taking any action based upon information contained in this e-newsletter, you should consult with a DMA professional.