Internet Sales Tax Outcomes Amazon's Affiliates
The conflict continues among large Internet retailers and the countries over charging sales tax for purchases on the internet. This is particularly the case where the merchant has no"nexus" or existence in the state where the customer is located. As I discussed in "Internet Sales Tax: Year-End Status," a prior Practical eCommerce article, states are attempting to be creative by redefining"nexus," or attaching additional reporting requirements to retailers who sell to their occupants from out-of-state. The Colorado Example Colorado is one state that has attempted to place extra burdens on retailers by requiring out-of-state retailers to report information about Colorado residents that buy from them. On January 13, 2011, Direct Marketing Association (DMA) won a preliminary injunction against Colorado, requiring the state to suspend all authorities of its reporting and notice requirements which were imposed on several out-of-state retailers. DMA wrote a