Tax & Accounting Blog

Click-Thru Nexus Legislation Introduced In Vermont

Indirect Tax, Sales Tax Nexus February 7, 2011

You can now add Vermont to the list of states that have introduced click-thru nexus legislation this year.  HB 143 was introduced in the House of Representatives on February 1st.

The bill, if enacted as introduced, would provide that a person making sales that are subject to sales and use tax would be presumed to be soliciting business through an independent contractor, agent, or other representative if the person enters into an agreement with a Vermont resident under which the resident, for a commission or other consideration, directly or indirectly refers potential customers by a link on an Internet website, or by other means, to the person. The presumption would apply only if the cumulative gross receipts from sales by the person to customers in Vermont, who are referred to the person by all residents with this type of agreement with the person, exceed $10,000 during the preceding tax year. As in other bills the presumption could be rebutted by proof that the resident with whom the person has an agreement did not engage in any solicitation in Vermont on behalf of the person that would satisfy the nexus requirements of the U.S. Constitution during the tax year in question.

The text of HB 143 is available on the Vermont Legislature’s website at: