Tax & Accounting Blog

The Nexus Bills Keep Rolling In

Indirect Tax, Sales Tax Nexus January 24, 2011

Our state governments seem to be wasting no time introducing remote seller nexus bills this legislative season. Colorado and Connecticut have both joined the ranks as of January 20th, 2011 with the introduction of bills to enact amazon type legislation as well as bills to repeal already enacted legislation.

Connecticut introduced three bills on January 20th; two in the House and one in the Senate.

HB 5543: Entitled “An Act Concerning Information on the Collection of Sales Tax by Remote Sellers,” the bill would further require the department to make recommendations to the joint standing committee of the General Assembly on how the state can best address this issue while taking matters relating to finance, revenue, and bonding into consideration.

HB 5545: A “click-thru-nexus” bill. According to the bill, its purpose is to specify that sales and use tax is due from an on-line retailer when the retailer uses an in-state affiliate to sell its products.

SB 259: upon enactment, amend the general statutes to require Internet retailers to collect and remit the sales and use tax.

All three bills were referred to the Joint Committee on Finance, Revenue, and Bonding on January 20, 2011.

Colorado meanwhile introduced two bills on January 19th in the Senate to repeal their “Amazon” law that was enacted last year. S.B. 56 would provide a use tax exemption for purchases of tangible personal property made by Colorado purchasers from out-of-state retailers that do not collect Colorado sales tax, which would have a neutralizing effect on the Amazon law if enacted. Also, S.B. 73, if enacted, would repeal multiple tax bills enacted last year, including the Amazon law.