Iowa Senate Passes Nexus Bill
- Sales Tax News
- Apr 4, 2012 | Susan McLain
The Iowa Senate passed Senate File 2330 (SF 2330) April 3, 2012, 48-0 and it has now been moved to the House Ways & Means Committee for review and vote. SF 2330 replaced SF 2309 as the Iowa Internet Nexus (“Amazon”) Bill.
The bill provides for nexus to be created in the following six ways:
- Presence of or ownership of a warehouse, office, distribution center, storage place or “…similar place of business in this state to facilitate the delivery of property or services sold by the retailer to the retailer’s customers;”
- Use of “…trademarks, service marks, or trade names…that are the same or substantially similar to those used by the retailer;”
- Delivery, installation, assembly or maintenance services performed in the state for the retailer’s customers;
- Facilitation of product delivery to customer in the state including a drop shipment location, warehouse, office or other means;
- Conducting “…any other activities in this state that are significantly associated with the retailer’s ability to establish and maintain a market in this state for the retailer’s sales;”
- Selling “…a similar line of products as the retailer and does so under the same or similar business name.”
In addition to broadening the definition of a retailer responsible for the collection of sales tax on transactions to Iowa state residents who receive, store or use product in the state, the bill restricts state agencies from being able to do business with a retailer who has not registered for sales tax collection.