SALT Report 1417 – The Tennessee House of Representatives passed a bill that codifies the terms of an agreement between the state and Amazon. According to the bill, Amazon would agree to collect Tennessee sales and use tax beginning in 2014 and the state will no longer consider the activities of a distribution facility operated by an Amazon affiliate when determining whether a business has a physical presence sufficient to establish nexus within Tennessee.
Also, Amazon would be required to provide Tennessee purchasers with a notice of use tax liability and must provide Tennessee purchasers with an annual statement listing the total sales made to the purchaser during the preceding calendar year. These provisions will be repealed January 1, 2014 if Amazon fails to satisfy the investment or job creation requirements; or the effective date of any federal legislation that authorizes the state to require remote sellers to collect tax.
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