Well, I warned you this would be a hectic year! Mississippi has now joined the ever growing list of states proposing legislation to require out of state merchants to collect sales tax. Mississippi Amazon tax is Senate Bill 2927 has been introduced. It seeks to amend the nexus definition to include out of state merchants who use anyone in state to get sales, including affiliates or online marketers. Mississippi online sales tax is now pending.
The biggest difference between the proposed Mississippi legislation and the proposed legislation in other states is that there is no threshold in Mississippi. If you use Mississippians to generate sales you would have a nexus. The impact of this would be huge. It would also set a precedent for legislation in other states.
It is also interesting to note that the wording of the proposed legislation is similar to some of laws that currently exist in other states; just makes it a little clearer to include online sales. If it passes the Mississippi modern nexus law would take effect July 2010.
Excerpt from SB2927
…The person solicits or transacts business in this state by employees, independent contractors, agents or other representatives, whether the remote sales thus subject to taxation by this state result from or are related in any other way to such solicitation or transaction of business. A person is presumed to be soliciting or transacting business by an independent contractor, agent, or other representative if the person enters into an agreement with a resident of this state under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet Web site or otherwise, to the person. This presumption may be rebutted by proof that the resident with whom the person has an agreement did not engaged in any solicitation in the state on behalf of the person that would satisfy the nexus requirement of the United States Constitution;
The bill is sponsored/written by Tommy Gollott and was referred to the finance committee.
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