Massachusetts – Directive 17-1 Significant Presence Includes “Cookies”

SALT Report 3897 –  New nexus standards were issued by Massachusetts (Directive 17-1) on, April 3, 2017, which defines electronic signals as tangible personal property including cookies.

This purpose of this Directive is to explain the application of the general sales and use tax jurisdictional standard set forth in chapters 64H and 64I of the General Laws to Internet vendors, taking into consideration the relevant provisions of the U.S. Constitution.[1]  As explained in the directive, for clarity and administrative simplicity, this Directive adopts an administrative bright line rule, rather than applying the state’s sales and use tax collection requirements on a case by case basis.  Specifically, as noted, the Massachusetts sales and use collection requirements will generally apply to an Internet vendor that in the prior taxable year had greater than $500,000 in Massachusetts sales and made sales for delivery into Massachusetts in 100 or more transactions.

Directive 17-1