SALT Report 1343 – The Tennessee General Assembly has introduced legislation that establishes an agreement with Amazon.com. If passed, Amazon would agree to collect Tennessee sales and use tax in 2014. Further, the bill provides that the activities of a distribution facility operated by a company’s affiliate in Tennessee would not be considered when determining whether the company has a physical presence in the state sufficient to establish nexus.
The above provisions will only apply to a business with an affiliate that:
- Places one or more distribution facilities in service in Tennessee, directly or through a third party, after January 1, 2011 and before January 1, 2014
- Makes or facilitates through a third party a capital investment of at least $350,000,000 after January 1, 2011 and before January 1, 2014
- Creates at least 3,500 qualified jobs after January 1, 2011 and before January 1, 2014 and those jobs last at least until January 1, 2016