Affiliate Nexus and Sales Tax - Its Legality and Implications
ARLINGTON, Va., Oct. 3, 2011 /PRNewswire-USNewswire/ -- As more and more consumers choose to purchase goods online rather than from traditional retail establishments, states and localities face the issue of fewer sales tax collectors and must rely instead on consumers to self-assess use tax. Some states have enacted "affiliate nexus" laws to try to increase sales tax collections.
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Do businesses have new sales tax collection obligations under these nexus laws? What business relationships might cause an e-tailer to become a sales tax collector in a state in which they have no physical presence? Are these laws constitutional? Answers to these and other pressing questions can be found in BNA's latest webinar Affiliate Nexus and Sales Tax – Its Legality and Implications on October 5, 2011.
This webinar will explain "affiliate nexus" and what several states have done or propose to do to try to get more sellers to become sales tax collectors. These so-called "Amazon" laws can apply to e-commerce vendors of all sizes, and the legislation varies among the states. A review of what states have enacted will be included along with the background on why the states are pursuing this approach and whether it is in line with the Quill decision and other cases.
The presentation will also help you to know if your business (or clients) are subject to these laws. Also covered will be the effect sales tax collection might have on other taxes and why some affiliate nexus laws have a rebuttable presumption tied to solicitation and the practical and legal distinction between solicitation and advertising. Finally, alternative approaches will be discussed such as the Streamlined Sales & Use Tax (SSUTA), H.R. 2701, the Colorado reporting/MTC approach, and others.
In 60-90 minutes the speakers will cover:
- The approach behind affiliate nexus under the Amazon or click-through nexus laws.
- Why states believe it is fair
- How these laws could impact e-commerce and interstate commerce
- Common elements of the laws:
- What is an agent and how does its activities create nexus?
- Annual safe-harbor thresholds
- Rebuttable presumptions
- Key terms and definitions
- Are sales of services and tangible personal property treated similarly?
- Where do we draw the line?
- The distinction between engaging in online solicitation or passive advertising with an in-state associate
- Activities that a state could deem to be "solicitation" (e.g., distributing printed material such as flyers or coupons, or initiating phone calls or sending e-mails)
- Activities that a state would likely deem as "passive advertising" (e.g., newspaper ads, maintaining a website that a user visits on his or her own initiative)
- How the Streamlined Sales and Use Tax Agreement and the enactment of the federal Main Street Fairness might resolve some aspects of the current controversy surrounding the click-through nexus laws.
Upon completion of this program, participants will be able to:
- Understand the approach to affiliate nexus under the so-called Amazon or click-through nexus laws
- Identify the states that have enacted these laws
- Gain familiarity with the key provisions and common elements of click-through nexus laws
- Recognize the distinction between passive advertising and online solicitation
- Consider some practical planning approaches to avoid running afoul of the laws
About the Speakers
Annette Nellen is a professor in and director of San Jose State University's Masters of Science in Taxation (MST) program. She teaches courses on tax research, accounting methods, high technology tax matters, property transactions, individual taxation, state income tax, ethics, and tax policy and reform. She chairs the SJSU Athletics Board and was the chair of the SJSU Academic Senate from May 2003 to May 2005. Annette is a frequent speaker and author on tax policy and reform topics. In the taxation of technology area, Annette is the author of Amortization of Intangibles, published by Bureau of National Affairs (BNA), part of the Tax Management Portfolios (#533-3rd).
Arthur R. Rosen is a partner in the global law firm of McDermott Will & Emery LLP. His practice focuses on tax planning and litigation relating to state and local tax matters for corporations, partnerships, and individuals. Formerly the Deputy Counsel of the New York State Department of Taxation and Finance as well as Counsel to the Governor's Temporary Sales Tax Commission and Tax Counsel to the New York State Senate Tax Committee, Mr. Rosen has held executive tax management positions at Xerox Corporation and AT&T. In addition, he has worked in accounting and law firms in New York City.
Mr. Toman is a partner in Reed Smith's San Francisco office. His practice focuses on state and local tax controversies. Prior to entering private practice, Mr. Toman held the position of Chief Counsel of the California Franchise Tax Board (FTB). The FTB's legal function is second in size and scope only to the legal function of the Internal Revenue Service. As Chief Counsel of the FTB, Mr. Toman had personal oversight responsibility for the FTB's litigation cases.
Affiliate Nexus and Sales Tax – Its Legality and Implications will take place October 5, 2011, from 1:00 p.m. - 2:30 p.m., ET. To register for this webinar and obtain further information about CLE and CPE credits, go to http://www.bna.com/affiliate-nexus-sales-w12884903472/?open&cmpid=tmtxpr2011 or call 1-800-372-1033, menu Option 6, then Option 1.
To receive automatic, email notification of upcoming BNA webinars that may be of interest to you, go to: http://www.bna.com/emailsignup.htm.
About BNA Tax & Accounting Webinars
BNA Tax & Accounting is the foremost source of tax and accounting research, news, practice tools, and guidance for tax attorneys, CPAs, corporate tax managers, estate planners, and financial accountants. Designed for today's busy practitioners, our webinars offer the same expertise and relevance that are the hallmark of all BNA Tax & Accounting resources. Conference attendees have the opportunity to ask the speakers questions, and may be eligible to earn CLE or CPE credits - all from the convenience of their own office or conference room.
SOURCE BNA
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