Tax Alerts
CT - Nexus presumption bill introduced A so-called "Amazon" bill has been introduced in the Connecticut House of Representatives that would provide that a retailer is presumed, for sales and use tax purposes, to be soliciting business in Connecticut by an independent contractor or other representative, if the retailer enters into an agreement with a Connecticut resident under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet site or otherwise, to the retailer. The presumption would be applicable only if the cumulative gross receipts from sales by the retailer to customers in Connecticut who are referred to the retailer by all residents with this type of an agreement with the retailer are in excess of $2,000 during the preceding four quarterly periods ending on the last day of March, June, September, and December.
The presumption could be rebutted, if the legislation is enacted, by proof that the resident with whom the retailer has an agreement did not engage in any solicitation in Connecticut on behalf of the retailer that would satisfy the nexus requirements of the U.S. Constitution during such four quarterly periods.
Similar legislation died in committee last year (S.B. 806, introduced in the Connecticut Senate on February 3, 2009, died in the Senate Committee on Revenue, Finance, and Bonding on June 2, 2009). H.B. 5481, introduced in the Connecticut House of Representatives on March 5, 2010, and referred to the Joint Committee on Finance, Revenue, and Bonding on March 8, 2010
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