Weekly Round-Up: Another Week, Another Amazon Law

Virginia recently joined other states this year by enacting a so-called “Amazon Law,” creating a presumption of nexus for certain out-of-state dealers, with the effective date of the provisions dependent upon federal legislation.

The law provides that a dealer is presumed to have sufficient activity within the state to require registration if any commonly controlled person maintains a distribution center, warehouse, fulfillment center, office, or similar location within the Commonwealth that facilitates the delivery of tangible personal property sold by the dealer to its customers.

The presumption may be rebutted by demonstrating that the commonly controlled person's activities in Virginia are not significantly associated with the dealer's ability to establish or maintain a market in the Commonwealth.

Virginia’s enactment of this bill follows closely on the heels of Utah, which recently passed an affiliate nexus bill, H.B. 384, on March 22, requiring certain remote vendors to collect and remit sales taxes to the state. Similarly, Tennessee codified its Amazon's sales and use tax nexus deal on March 23 under which the online retail giant will be exempt from collecting and remitting Tennessee sales and use taxes until 2014, but will be required to notify Tennessee purchasers that use tax may be due on transactions. In January 2012, Amazon agreed to begin collecting Indiana sales tax, under an agreement with the state, announced Jan. 9. Further information on these developments is available in the Bloomberg BNA's Weekly State Tax Report.

For a complete look at the development in Virginia, check out Bloomberg BNA’s Christine Boeckel’s story in this week’s issue of the Bloomberg BNA Weekly State Tax Report, which can be read in its entirety here.

In other developments…

Ethan Millar, of Alston & Bird, questions the expanded sweep of unclaimed property audits and the focus by states on generating revenuesin this week’s issue of the Bloomberg BNA Weekly State Tax Report.

Ethan will discuss recent developments in unclaimed property law, including the rise of controversial audit practices used by some states to enforce their escheatment provisions, in a new Bloomberg BNA Webinar on April 26.

Maryland considers raising sales tax rate, would tie second highest in nation, Scott Drenkard, of the Tax Foundation reports.

A review of upcoming state tax amnesty programs by The Multistate Tax Commission.

13 states are leading the way in generating much-needed answers about tax incentives’ effectiveness, a new study by the Pew Center on the States reports.

New York continues to find access charges for businesses operating via the internet subject to sales tax, according to an article in Morrison & Foerster LLP’s April 2012 edition of New York Tax Insights.

Compiled by Priya D. Nair
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