Tax & Accounting Blog

Louisiana: Amazon bill introduced

Indirect Tax, Sales Tax Nexus May 31, 2011

Louisiana Considers “Click-Through Nexus” Bill

A bill (HB 641) was introduced in the Louisiana House of Representatives on May 24, 2011 that would add affiliate nexus and “click-through nexus” provisions to the sales and use tax laws.  This click-through nexus” rules are also known as “Amazon” laws (coined after and they create a presumption that a remote online retailer is an in-state company for sales tax collection purposes if the company has an agreement with in-state marketing affiliates to pay them commissions based on sales they generate for the remote retailer.

Numerous states have considered click-through nexus in the past three years.  At this time, however, only seven have passed such legislation:  Arkansas, Connecticut, Illinois, New York, North Carolina, Rhode Island and Vermont.

If enacted in Louisiana, the bill would expand the definition of “engaging in business in the taxing jurisdiction” to include the solicitation of business through an independent contractor or other representative pursuant to an agreement with a Louisiana resident or business under which the resident or business, for a commission, referral fee, or other consideration of any kind, directly or indirectly refers potential customers, whether by link on an Internet website or otherwise, to the seller.  Under Louisiana law, a person engaged in business in the taxing jurisdiction is a “dealer” and are thus under an obligation to collect and remit sales taxes.

The full text of the bill can be found at: