Presenting a live 110-minute teleconference with interactive Q&A Sales Tax Affiliate and Click-Through Nexus: After the Amazon Ruling Mastering the New Demands of Sales Tax Compliance for Multi-State Companies THURSDAY, JANUARY 30, 2014 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific Today’s faculty features: Pat Derdenger, Tax Partner, Steptoe & Johnson , Phoenix Arthur Rosen, Partner, McDermott Will & Emery , New York The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10 .
FOR LIVE EVENT ONLY Sound Quality If you are listening via your computer speakers, please note that the quality of your sound will vary depending on the speed and quality of your internet connection. If the sound quality is not satisfactory, you may listen via the phone: dial 1-866-873-1442 and enter your PIN when prompted. Otherwise, please send us a chat or e-mail sound@straffordpub.com immediately so we can address the problem. If you dialed in and have any difficulties during the call, press *0 for assistance. Viewing Quality To maximize your screen, press the F11 key on your keyboard. To exit full screen, press the F11 key again.
FOR LIVE EVENT ONLY Attendees must listen throughout the program, including the Q & A session, in order to qualify for full continuing education credits. Strafford is required to monitor attendance. Record verification codes presented throughout the seminar . If you have not printed out the “Official Record of Attendance,” please print it now (see “Handouts” tab in “Conference Materials” box on left -hand side of your computer screen). To earn Continuing Education credits, you must write down the verification codes in the corresponding spaces found on the Official Record of Attendance form. Please refer to the instructions emailed to the registrant for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10 .
FOR LIVE EVENT ONLY If you have not printed the conference materials for this program, please complete the following steps: Click on the ^ symbol next to “Conference Materials” in the middle of the left - • hand column on your screen. • Click on the tab labeled “Handouts” that appears, and there you will see a PDF of the slides and the Official Record of Attendance for today's program. • Double-click on the PDF and a separate page will open. Print the slides by clicking on the printer icon. •
Sales Tax Affiliate and Click-Through Nexus: After the Amazon Ruling Jan. 30, 2014 Pat Derdenger, Steptoe & Johnson pderdenger@steptoe.com Arthur Rosen, McDermott Will & Emery arosen@mwe.com
Today’s Program Recent Developments and Background Slide 8 – Slide 57 [Arthur Rosen] Practical Compliance Concerns Slide 58 – Slide 84 [Pat Derdenger]
Notice ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY THE SPEAKERS’ FIRMS TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN. You (and your employees, representatives, or agents) may disclose to any and all persons, without limitation, the tax treatment or tax structure, or both, of any transaction described in the associated materials we provide to you, including, but not limited to, any tax opinions, memoranda, or other tax analyses contained in those materials. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.
Arthur Rosen, McDermott Will & Emery RECENT DEVELOPMENTS AND BACKGROUND
Agenda I. Recent Developments II. Background III. Income Tax Implications IV. Other Aspects of State Actions A. Amazon Tax Collection Deals B. VDA Offers C. Other Concerns 9
Agenda I. Recent Developments II. Background III. Income Tax Implications IV. Other Aspects of State Actions A. Amazon Tax Collection Deals B. VDA Offers C. Other Concerns 10
Recent Developments – Click-Through Nexus • Click-Through Nexus Laws Washington Maine Montana Minnesota North Dakota VT Oregon Vt. Oregon Wisconsin NH NH Idaho Mass. New York Michigan South Dakota CT Wyoming Michigan CT CT PA R.I. Iowa Pennsylvania N. Nebraska Nevada Ohio J. MD Illinois* Utah Indiana Del. M.D. Colorado W. Va. California W. VA Virginia Kansas Kentucky D.C. Missouri N. Carolina TN Arizona Oklahoma S. Carolina New Mexico Arkansas Legend Miss. Alabama Georgia Miss. Alabama Nexus legislation passed Texas Nexus without statute Louisiana Florida Legislation under Hawaii Alaska consideration Legislation considered but not passed or passed then vetoed Other (incl. notification requirement) *The Illinois Supreme Court has recently struck down No state sales or use tax the state’s click -through nexus law. 11
Recent Developments – Click-Through Nexus State te Effecti ctive Date te Affiliate te Thresh shold Statu tute te Arkans ansas as (rebut uttab able presumpt umption) on) Oct. 24, 2011 More than $10,000 Ark. Code Ann. § 26-52-117 Califor forni nia a (rebut uttab able presum umption on) Sept. 15, 2012. More than $10,000 and (and more than Cal. Rev. & Tax. § 6203(c)(5) $1,000,000 in annual in-state sales whether a result of click-through referrals or otherwise) Conne nnecticut ut (irrebut uttab able presum umption on) July 1, 2011 More than $2,000 Conn. Gen. Stat. § 12-407(a)(12)(L) Georgia a (rebut buttab table presu sumpt ption) on) Oct. 1, 2012 More than $50,000 Ga. Stat. Ann. § 48-8-2(8)(M) Illinois ois (irrebuttab able presumption) on) July 1, 2011 More than $10,000 35 ILCS §§ 105/2 and 110/2 Kans nsas as (rebut uttab able presum umption) on) Oct. 1, 2013 More than $10,000 Kan. Stat § 79-3702(h)(2)(C) Maine (rebut uttab able presum umption on) Oct. 9, 2013 More than $10,000 Me. Rev. Stat. Ann. § 1754-B(1-A)(C) Minnesot ota a (rebut uttab able presumption) on) July 1, 2013 More than $10,000 Minn. Stat. § 297A.66, Subd. 4a Missou ouri (rebut uttab able presumption) on) Aug. 28, 2013 More than $10,000 Mo. Rev. Stat. § 144.605(2)(e) New York (rebut uttab table presu sumpt ption) on) June 1, 2008 More than $10,000 N.Y. Tax Law § 1101(b)(8)(vi) North h Carol olina na (rebut uttab able presum umption) on) Aug. 7, 2009 More than $10,000 N.C. Gen. Stat. § 105-164.8 Rhod ode Island and (rebut uttab able presum umption) on) July 1, 2009 More than $5,000 R.I. Gen. Laws § 44-18-15 Vermont mont (rebut uttable presumpt umption) on) When adopted in More than $10,000 Vt. Stat. Ann. tit. 32, § 9701(9)(I) 15 other states. (H.B. 436) • The Pennsylvania DOR requires remote sellers to collect sales and use tax. Pa. Sales and Use Tax Bulletin 2011-01 (Dec. 1, 2011) 12
Recent Developments – Click-Through Nexus I. Amazon.com, LLC v. New York State Department of Taxation and Finance , 20 N.Y .3d 586 (N.Y . 2013) A. The New York Court of Appeals upheld the New York Amazon Law as facially constitutional. B. The Court found that although physical presence is generally necessary for sales tax nexus, it need not be substantial, and can be met if economic activities are performed in the state by a seller on behalf of the taxpayer. C. “Active, in -state solicitation that produces a significant amount of revenue qualifies as ‘demonstrably more than a slightest presence . . . . The bottom line is that if a vendor is paying New York residents to actively solicit business in this State, there is no reason why that vendor should not shoulder the appropriate tax burden.’” D. The United States Supreme Court denied certiorari on December 2, 2013. 13
Recent Developments – Click-Through Nexus I. Performance Marketing Ass’n v. Hamer , No. 114496 (Ill. S. Ct. Oct. 18, 2013). A. “In short, under the Act, performance marketing over the Internet provides the basis for imposing a use tax collection obligation on an out-of-state retailer when a threshold of $10,000 in sales through the clickable link is reached. However, national, or international, performance marketing by an out-of-state retailer which appears in print or on over-the-air broadcasting in Illinois, and which reaches the same dollar threshold, will not trigger an Illinois use tax collection obligation. B. “The relevant provisions of the Act therefore impose a discriminatory tax on electronic commerce within the meaning of the ITFA .” C. Commerce clause challenge not reached. 14
Recent Developments – Use Tax Notice Requirements I. Colorado A. Colo. Rev. Stat. 39-21-112(3.5)(d) II. Kentucky A. Ky. Rev. Stat. Ann. 139.450 III. Oklahoma A. 68 Okla. Stat. 1406.1 IV. South Carolina A. S.C. Code Ann. 12-36-2691(E), -2692 V. South Dakota A. S.D. Codified Laws 10-63-2 15
Recommend
More recommend
