Yesterday afternoon the Senate passed two bills, SB 658 and SB 659, that would require that a sales tax be added on to purchases made by retailers who have a so-called “nexus” within the state. These bills are more commonly known as the Main Street Fairness legislation.
The bill includes a seller who sells “tangible personal property” and includes new provisions that a seller is presumed to have a nexus if it uses its employees, agents, representatives, or independent contractors to promote sales to purchasers.
It also tags a seller if it shares management, business systems, business practices, or employees with the seller, or in the case of an affiliated person, engages in “Intercompany transactions” with the seller to establish or maintain the seller’s market.
And a seller is presumed to have a nexus in the state if its total cumulative gross receipts from sales for storage, use or consumption to purchasers in this state exceed $50,000 during the immediately preceding 12 months.
Samantha Harkins is the Director of State Affairs for the League handling municipal finance issues. She can be reached at firstname.lastname@example.org or 517-908-0306.