State Tax Snapshot: A Dozen States Say Click-Through Nexus Applies, Despite Absence of Legal Authority

Tax officials in 12 states and the District of Columbia say that their jurisdiction adopts a click-through nexus policy under which it requires sales and use tax collection from out-of-state vendors that compensate residents for sales made via links on their websites, despite the apparent absence of a law or administrative pronouncement authorizing their jurisdiction to do so, according to the results of the Bloomberg BNA 2014 Survey of State Tax Departments .  

These jurisdictions were: Arizona, the District of Columbia, Hawaii, Iowa, Louisiana, Maryland, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah and Washington.

An additional 12 states have a click-through nexus policy pursuant to legislation or an administrative pronouncement. This means that 24 states and the District of Columbia--over half the jurisdictions that impose sales tax—employ a click-through nexus standard.

Below is a list of states that have adopted click-through nexus under legislation or through an administrative pronouncement.

State-by-State Click-Through Nexus Laws 


Effective Date

Affiliate Threshold


Arkansas (rebuttable presumption)

Oct. 24, 2011

More than $10,000

Ark. Code Ann. § 26-52-117

California (rebuttable presumption)

If federal legislation is enacted by July 31, 2012, then click-through nexus is effective Jan. 1, 2013. If federal legislation is not enacted, then A.B. 155 is effective Sept. 15, 2012.

More than $10,000 (and more than $1 million in annual in-state sales)

Cal. Rev. & Tax. § 6203(c)

Connecticut (irrebuttable presumption)

July 1, 2011

More than $2,000

Conn. Gen. Stat. § 12-407(a)(12)(L)

Georgia (rebuttable presumption

Oct. 1, 2012

More than $50,000

Ga. Stat. Ann. § 48-8-2(8)(M)

Illinois (irrebuttable presumption); repeal upheld by Performance Mktg. Ass'n v. Hamer, 998 N.E.2d 54 (Ill. 10/14/2013)

July 1, 2011

More than $10,000

35 ILCS 105/2, 35 ILSC 110/2

Kansas (rebuttable presumption)

July 1, 2013

More than $10,000

Kan. Stat. Ann. § 79-3702(h)(2)(C)

Maine (rebuttable presumption)

Oct. 9, 2013

More than $10,000

Me. Rev. Stat. Ann. § 1754-B(1-A)(C)

Minnesota (rebuttable presumption)

July 1, 2013

More than $10,000

Minn. Stat. § 297A.66(4a)

Missouri (rebuttable presumption)

Aug. 28, 2013

More than $10,000

Mo. Rev. Stat. § 144.605(2)(e)

New York (rebuttable presumption)

June 1, 2008

More than $10,000

N.Y. Tax Law § 1101(b)(8)(vi)

North Carolina (rebuttable presumption)

Aug. 7, 2009

More than $10,000

N.C. Gen. Stat. § 105-164.8


Sept. 1, 2012

None specified

Pennsylvania Sales Tax Bulletin No. SUT 2011-01 (Dec. 1, 2011); proposed legislation in 2013 (H.B. 1043)

Rhode Island (rebuttable presumption)

July 1, 2009

More than $5,000

R.I. Gen. Laws § 44-18-15

Vermont (rebuttable presumption)

When adopted in 15 other states

More than $10,000

Vt. Stat. Ann. tit. 32, § 9701(9)(I) (H.B. 436)


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