Nevada Click-Through Nexus Law Enacted
- Internet sales tax
- June 12, 2015 | Gail Cole
Existing nexus laws in Colorado and New York were the basis of the enactment of Nevada AB 380, which creates new affiliate nexus and remote seller click-through nexus provisions. The new law should make it more difficult for Nevadans to avoid paying sales tax when purchasing taxable goods online.
Effective July 1, 2015, there is a rebuttable presumption that a retailer is required to impose, collect and remit Nevada sales and use taxes if all of the following are true:
- The retailer is part of a controlled group of business entities that has a component member with a physical presence in Nevada.
- Such a component member engages in certain activities (delineated in the bill) in Nevada relating to the ability of the retailer to make retail sales to Nevada residents.
- The component member conducts 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 products or services.
Effective October 1, 2015, there is a rebuttable presumption that a retailer must impose, collect and remit Nevada sales and use tax if both of the following are true:
- The retailer enters into an agreement with a resident of Nevada under which the resident receives consideration for referring potential customers to the retailer (“whether by a link on an Internet website or otherwise”).
- The cumulative gross receipts from sales by the retailer to customers in Nevada through any such referrals exceeds $10,000 during the preceding four quarterly periods ending on the last day of March, June, September and December.
For more specifics, please see AB 380.
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