Although Tennessee also has affiliate tax legislation pending the news there is encouraging. The bills, SB 1741 and HB 1947 are quite similar to NY Affiliate Tax law but the interpretation seems quite different. The Tennessee version allows for rebuttal but threshold is lower, just $2,000 in sales.
The most important comment is in the Fiscal Impact Report and that is where the encouraging news can be found. From the Fiscal Impact Report (link at end of post)
• According to the Department of Revenue (DOR), out-of-state dealers with commissioned representatives in this state, who merely solicits sales for such dealers, and whereby customers pay dealers directly, does not make such dealers responsible for sales tax unless they have some form of traditional nexus in the state.
• DOR acknowledges that this bill seems to require out-of-state dealers to be responsible for sales tax and infer that the existence of the commissioned representatives creates a sufficient physical presence or nexus enabling the department to require registration of the dealer under certain circumstances. However, the Department has indicated that this bill alone would not be deemed sufficient for broadening the definition of traditional physical nexus in order for the department to require registration by such dealers. As a result, any increase to state revenue is considered to be not significant.
Find all information at SB 1741 and HB 1947 you have links to all the bill information including the Fiscal Impact Report.
It looks like good news from Tennessee. If the law passes it seems like it will have little impact on affiliates and out of state merchants.