Click-Through Nexus Tax
Federal and state legislatures continue to propose and consider laws regarding click-through nexus tax legislation. Click-through nexus tax legislation typically requires that a remote seller meets a minimum sales threshold in the state in question resulting from activities of an in-state referral agent ("Click-Through Nexus Tax"). The seller must be making commission payments to the in-state resident for any orders that come about as a result of the click-through referral from the resident's website. It's important to understand the legislation- both passed and proposed- that may affect your business. Depending on the state, Click-Through Nexus Tax legislation may or may not also include Affiliate nexus tax legislation; you should contact your local tax and legal expert to ensure your compliance with all relevant state tax provisions.
Click on each state to see what’s going on, or download all activity in chronological order.
Marketplace Fairness Act of 2015
November 1, 2015
A bipartisan group of U.S. Senators have introduced S. 698, the Marketplace Fairness Act of 2015 (“MFA 2015”). If adopted, beginning 180 days after publishing a notice of intent to exercise such authority, the MFA 2015 would authorize Streamlined Sales and Use Tax Agreement (“SSUTA”) member states to enact Click-Through nexus tax laws requiring online retailers with out-of-state sales of over $1,000,000 (Small Seller Exemption) to collect and remit sales and use taxes when entering into referral agreements with in-state residents. Non-SSUTA member states who adopt certain “minimum simplification requirements” will also be able to require online retailers to collect and remit sales and use tax for referral agreements with in-state residents six months after the state meets the minimum simplification requirements. One important requirement for non-SSUTA member states under the MFA 2015 is that these states would be required to provide remote sellers with free software calculating sales and use taxes for each transaction and for filing the tax returns. The Senate is currently considering the bill.
November 1, 2015
This information is not tax or legal advice, it does not necessarily represent CJ Affiliate's position(s). It is provided as a courtesy for your convenience. CJ shall not be responsible for the accuracy of such information, especially considering a portion of the information may be provided by third parties. We therefore disclaim all liability and responsibility arising from any reliance placed on such information.
- Legislation Defeated vRecent Click-Through nexus tax legislation has been overturned by the State’s legislators or vetoed by the state’s governor.
- Legislation Passed vThe state has passed Click-Through nexus tax legislation into law.
- Click-Through Nexus Tax Policy vThe state has a Click-Through nexus tax policy that may affect you, but no enacted legislation. Check with your tax or legal expert in the state for the current requirements to ensure compliance.
- No Sales Tax vThe state does not charge a tax on any purchases that occur within the state.
- No Recent Legislation vThere is no Click-Through nexus tax legislation pending in the state’s current legislative session.
- Legislation Pending vA Click-Through nexus tax bill has been introduced in the state’s current legislative session or is awaiting approval before being passed into law.
- Legislation Overturned vThe Click-Through nexus tax legislation has been overturned by the state’s court and is no longer valid.