Minnesota – Click-Through Nexus Bill Introduced

SALT Report 2040 – The Minnesota State Legislature recently introduced a bill that creates a sales and use tax click-through nexus provision.  Specifically, SF 8 provides that “a retailer would be presumed to have a solicitor in Minnesota if it enters into an agreement with a resident under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet website or otherwise, to the seller.”

This provision would apply only if the total gross receipts from sales to Minnesota customers who were referred to the retailer are more than $10,000 and accrued in the preceding 12-month period. This presumption can be rebutted by proof that the resident with whom the seller has an agreement did not solicit sales on behalf of the retailer during the 12-month period in question.

Also, the bill defines the term “solicitor” to mean a person, whether an independent contractor or other representative, who directly or indirectly solicits business for the retailer. The term “resident” would include an individual who is a resident of Minnesota or a business that owns tangible personal property in Minnesota or has one or more employees providing services for the business in Minnesota.

If enacted, SF 8 would apply to sales and purchases made after June 30, 2013.

For Further Information:

Minnesota State Legislature – SF 8