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Rhode Island Internet Tax is a Reality

It seems like the big news comes from the small state of Rhode Island. Rhode Island Internet tax is now a reality. On Tuesday, the Governor of Rhode Island signed the budget bill containing the changes that expand the nexus definition.

2 44-18-15. “Retailer” defined. — (a) “Retailer” includes:
 (1) Every person engaged in the business of making sales at retail, including sales at auction of tangible personal property owned by the person or others.
 (2) Every person making sales of tangible personal property through an independent contractor or other representative, if the retailer enters into an agreement with a resident of this state, 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 retailer, provided the cumulative gross receipts from sales by the retailer to customers in the state who are referred to the retailer by all residents with this type of an agreement with the retailer, is in excess of five thousand dollars ($5,000) during the preceding four (4) quarterly periods ending on the  last day of March, June, September and December. Such retailer shall be presumed to be soliciting business through such independent contractor or other representative, which presumption may be rebutted by proof that the resident with whom the retailer has an agreement did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of the United States Constitution during such four (4) quarterly periods.

As you can see the wording is quite similar to the NY version. That would leave me to believe that a solution similar to the NY solution would work.  I urge affiliates from Rhode Island and merchants to examine this possibility.

I offer my help. I do so because I remember what it was like to see my business destroyed. I have been down this road and will gladly help make your voyage a little easier.

I also do this because we are all in this together.

I offer you my Affiliate Voice, because that is the right thing to do.

{ 2 comments… add one }

  • Mark Welch July 4, 2009, 7:07 pm

    Unfortunately, the RI tax agency’s initial interpretation of the law seems to suggest that the “New York solution” will not work. In New York, the tax agency focused on the “solicitation” issue; in Rhode Island, the sole focus appears to be on the “mode of computing payment” for advertising.

  • Joe Agostinelli October 19, 2009, 4:05 pm

    This new tax has caused my best and highest-paying affiliate program to dump me and has caused me to lose income that had become very important during these rough economic times.

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