ARLINGTON, Va. – Despite the drop in sales-tax revenue, only three states, New York, California and Rhode Island have enacted “Amazon-laws” that say in-state affiliates of online vendors have established sales tax nexus. However, another 17 states say if the affiliate is paid less than $10,000 a year, an Amazon-top arrangement with an in-state affiliate would trigger Nexus, according to the 10th Annual BNA Survey of State Tax Departments.

The study also found a continuing lack of guidance on even basic income tax nexus policies. Whiles most stays adhere to an “economic presence standard,” few define  the activities that can result in taxable nexus. Only California, starting next year, and Ohio, have statutes conforming to the Multistate Tax Commission’s model law, Factor Presence Nexus Standard for Business Activity Taxes, which was adopted in 2002.

Among highlights of this year’s study are the following:
*Thirty states impose tax for the entire year after they determine a company has income tax nexus. This  includes that occurred before nexus was established. 
*Forty-five states said that out-of-state employers who have employees who telecommutes from a home within their borders have created income tax nexus.
*Five states said remote sales of digital content such as music or videos would trigger sales tax nexus. 
*Fifteen states said sales tax nexus would arise from airing an “info-mercial on an in-state television station. 
*Only nine said nexus would arise from a “per-impression” advertising arrangement on an in-state website.

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