Vermont is the latest state to introduce Internet sales tax legislation. While debate continue in other states Vermont is gearing up and formally introduced legislation this week. It becomes evident that momentum for modernized nexus regulations is rapidly gaining. Vermont Internet Sales Tax legislation is House Bill 661. The bill was introduced by Representatives Jeffrey Wilson, John Rodgers and Megan Smith.
The Vermont Internet Tax bill was introduced on January 29 and was referred to the House Ways and Means Committee. This committee will be meeting Tuesday through Friday of next week.
Legislation is very similar to NY, NC and RI versions. Of course as we learned, interpretation may be different. If passed will take effect July 1 2010.
From Vermont H661
An act relating to taxation of certain Internet sales It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 9701(9)(I) is added to read:
(I) For purposes of subdivision (C) of this subdivision (9), a person making sales that are taxable under this chapter shall be presumed to be soliciting business through 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 website or otherwise, to the person if the cumulative gross receipts from sales by the person to customers in the state who are referred to the person by all residents with this type of an agreement 1 with the person is in excess of $10,000.00 during the preceding tax year. For purposes of subdivision (C) of this subdivision (9), the presumption may be rebutted by proof that the resident with whom the person has an agreement did not engage in any solicitation in the state on behalf of the person that would satisfy the nexus requirements of the United States Constitution during the tax year in question.
Affiliate Advocacy continues to monitor all states. It is critical for every affiliate in every state to prepare. I cannot stress that enough. What some may call Amazon tax is spreading and has the potential to impact everyone.
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