Since our last update on the status of various legislative attempts to introduce Amazon-style affiliate nexus across the country, there have been a few important developments:
California
In the most current iteration of its bill, passed by the State Assembly on May 6, California scrapped proposed affiliate nexus and Colorado-style notice requirements (discussed here by us last month), and instead merely requires out-of-state retailers to provide notice on their websites and in their catalogues that California customers are required to remit use tax. In the bill analysis provided by the Assembly’s Revenue and Taxation Committee, the Committee rightly noted that under Quill, California is constitutionally prohibited from collecting sales tax from out-of-state retailers with no physical presence in the State. The Committee also noted that the bill provides no repercussions for non-compliant retailers. The bill is now before the State Senate.
Connecticut
In Connecticut, the last action taken on H.B. No. 5481, the proposed affiliate nexus legislation, was on April 13. The 2010 regular session of the State’s legislature adjourned on May 5 without holding any vote on the bill, and it appears that no affiliate nexus legislation will be enacted in the near future.
UPDATE, Aug. 31, 2010: Please see our most recent post concerning the status of this California Bill here.
UPDATE, Jul. 5, 2011: California has enacted a new nexus law.
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Word on the street has been that Connecticut might be tinkering with its definition of "vendor" to reach less traditional "agency" relationships. That effort may be stalled while at least one major case involving Scholastic Book Clubs gets resolved by the Connecticut Supreme Court later this year.
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