Legislators in Louisiana are considering a click-through nexus law. Commonly known as “Amazon” laws after their most visible target, these laws deem an out-of-state company to be an in-state company for sales tax collection purposes if the company receives commissioned referrals from in-state resident “affiliates.” The out-of-state company must then collect sales tax for the state. While 21 states have considered “Amazon” laws in the past three years, only five have enacted them. Our new report explains why these laws expand state taxing authority in a manner likely to invite extended litigation, and that in every state, they have failed in their twin objectives of collecting additional revenue and creating a level playing field between brick-and-mortar and remote sellers. Read the report here.
