States continue to expand the definition of nexus so as to collect the tax without a physical presence. One area of focus is sellers who ship products into their states without collecting tax. Legislation has passed in some states which makes the use of an in state affiliate directing sales to an out of state remote sellers' website a nexus-creating activity for the out of state seller. This affiliate nexus is often referred to as "click-through-nexus." 16 states have introduced legislation requiring remote sellers to inform the purchaser of their responsibility to self report the tax and/or to provide the state a customer list of purchases shipped into their state.
Many retailers (in states with sales tax) would support legislation requiring the collection of sales tax because they face an uphill battle when the competition does not have to charge sales tax. Failure to monitor the situation closely could put businesses in a non-compliant position.
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