In a popular move by states these days, Connecticut has introduced legislation addressing Affiliate Nexus.
If passed, remote sellers with a brick and mortar affiliation in the state would be required to collect sales tax on sales into Connecticut . The legislation would amend Connecticut’s definition of doing business in the state to include processing orders electronically, by fax, telephone, Internet, or other electronic ordering, or processing orders by non-electronic means, by mail order, fax, telephone, or otherwise if the person or persons processing the orders:
The legislation (H.B. 6965) would be effective for sales occurring on or after October 1, 2005.
If you would like additional information on this topic or have any questions, please contact the taxdesk@thesaltgroup.com