[BizDocs]

Looks like there's been some activity tonight, folks:

http://ncleg.net/

[BizDocs]

I'm still reading through all this, but this clause caught my eye while I was looking to see if the NY legislature's text is included (haven't found it yet):

STUDY OF NORTH CAROLINA'S SALES AND INCOME TAX STRUCTURE

SECTION 27A.7. The President Pro Tempore of the Senate and the Speaker of the House of Representatives authorize the Finance Committees of the Senate and the House and other designated members to meet during the interim to study and recommend legislation to reform North Carolina's sales and income tax structure in order to broaden the tax base and lower the State's tax rates.

[jamuhn]

It's still in there. Now it is under section 27A.3

[BizDocs]

Yeah I'm going through it now....

NEXUS CLARIFICATION AND CLICK THROUGHS, USE TAX LINE ON INCOME
TAX RETURN, DIGITAL PRODUCTS, MAGAZINES DELIVERED BY MAIL
SECTION 27A.3.(a) G.S. 105-164.8 reads as rewritten:
"§ 105-164.8. Retailer's obligation to collect tax; mail order remote sales subject to tax.

(a) Obligation. – Every retailer engaged in business in this State as defined in this
Article shall collect said tax A retailer is required to collect the tax imposed by this Article
notwithstanding any of the following:
(1)
That the purchaser's order or the contract of sale is delivered, mailed mailed,
or otherwise transmitted by the purchaser to the retailer at a point outside
this State as a result of solicitation by the retailer through the medium of a
catalogue or other written advertisement; oradvertisement.
(2)
That the purchaser's order or the contract of sale is made or closed by
acceptance or approval outside this State, or before said any tangiblepersonal property or digital property that is part of the order or contract
enters this State; orState.
(3)
That the purchaser's order or the contract of sale provides that said the
property shall be or is in fact procured or manufactured at a point outside
this State and shipped directly to the purchaser from the point of origin;
ororigin.
(4)
That said the property is mailed to the purchaser in this State or a point
outside this State or delivered to a carrier outside this State f.o.b. or
otherwise and directed to the purchaser in this State regardless of whetherthe cost of transportation is paid by the retailer or by the purchaser;
orpurchaser.
(5)
That said the property is delivered directly to the purchaser at a point outside
this State; orState.
(6)
Any combination in whole or in part of any two or more of the foregoing
statements of fact, if it is intended that the tangible personal propertypurchased be brought to this State for storage, use use, or consumption in
this State.
(b) Mail Order Remote Sales. – A retailer who makes a mail order remote sale is
engaged in business in this State and is subject to the tax levied under this Article if at least one
of the following conditions is met:
(1)
The retailer is a corporation engaged in business under the laws of this State
or a person domiciled in, a resident of, or a citizen of, this State.
(2)
The retailer maintains retail establishments or offices in this State, whether
the mail order remote sales thus subject to taxation by this State result from
or are related in any other way to the activities of such the establishments or
offices.
(3)
The retailer has representatives in this State who solicit business or transact
business on behalf of the retailer, solicits or transacts business in this State
by employees, independent contractors, agents, or other representatives,
whether the mail order remote sales thus subject to taxation by this Stateresult from or are related in any other way to such the solicitation or
transaction of business. A retailer is presumed to be soliciting or transacting
business by an independent contractor, agent, or other representative if the
retailer enters into an agreement with a resident of this State under which theresident, for a commission or other consideration, directly or indirectly refers
potential customers, whether by a link on an Internet Web site or otherwise,
to the retailer. This presumption applies only if the cumulative gross receipts
from sales by the retailer to purchasers in this State who are referred to the
retailer by all residents with this type of agreement with the retailer is inexcess of ten thousand dollars ($10,000) during the preceding four quarterly
periods. This presumption may be rebutted by proof that the resident withwhom the retailer has an agreement did not engage in any solicitation in the
State on behalf of the seller that would satisfy the nexus requirement of the
United States Constitution during the four quarterly periods in question.
(4)
Repealed by Session Laws 1991, c. 45, s. 16.
(5)
The retailer, by purposefully or systematically exploiting the market
provided by this State by any media-assisted, media-facilitated, or
media-solicited means, including direct mail advertising, distribution of
catalogs, computer-assisted shopping, television, radio or other electronic
media, telephone solicitation, magazine or newspaper advertisements, orother media, creates nexus with this State. A nonresident retailer who
purchases advertising to be delivered by television, by radio, in print, on the
Internet, or by any other medium is not considered to be engaged in businessin this State based solely on the purchase of the advertising.
(6)
Through compact or reciprocity with another jurisdiction of the United
States, that jurisdiction uses its taxing power and its jurisdiction over the
retailer in support of this State's taxing power.
(7)
The retailer consents, expressly or by implication, to the imposition of the
tax imposed by this Article. For purposes of this subdivision, evidence that a
retailer engaged in the activity described in subdivision (5) shall be is prima
facie evidence that the retailer consents to the imposition of the tax imposedby this Article.

[BizDocs]

§ 105 164.8(b)(3)

So here we go - current statute:

(3) The retailer has representatives in this State who solicit business or transact business on behalf of the retailer, whether the mail order sales thus subject to taxation by this State result from or are related in any other way to such solicitation or transaction of business.

And the N.Y., uh, I mean the N.C. legislation:

(3) The retailer solicits or transacts business in this State by employees, independent contractors, agents, or other representatives, whether the remote sales thus subject to taxation by this State result from or are related in any other way to the solicitation or transaction of business. A retailer is presumed to be soliciting or transacting business by an independent contractor, agent, 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 Web site or otherwise, to the retailer. This presumption applies only if the cumulative gross receipts from sales by the retailer to purchasers in this State who are referred to the retailer by all residents with this type of agreement with the retailer is inexcess of ten thousand dollars ($10,000) during the preceding four quarterly periods. This 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 seller that would satisfy the nexus requirement of the United States Constitution during the four quarterly periods in question.

WAY TO GO, SHEEP! Now, diagram those sentences for us.

[rickyspears]

A retailer is presumed to be soliciting or transacting business by an independent contractor, agent, 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 Web site or otherwise, to the retailer.

This seems broad enough to include every company that advertises in any print publication, billboard, radio, or television in North Carolina too. I wonder if newspaper, magazine, and broadcast publishers were aware of this if they would join the fight too? I also think this can include overlap of Pay-per-click online--it certainly hasn't ruled that out.

Does anyone read this and think that they can't apply it to [B]any form of advertising[B] when they so choose?

[BizDocs]

I seriously doubt a single legislator could clearly explain what this means. After all, they didn't write it. Someone in New York did. The wording is intentionally nebulous so it can be manipulated however they want it to be perceived.

[Molly_Vanns]

Does anyone know if NC measures their quarters like NY does, or do they go off the calendar and have Jan-Mar, Ap-June, July-Sep, Oct-Dec?

Or neither?

Thanks

[mellie]

NC goes by the calendar (Jan-Mar, Apr to Jun....)
http://www.dornc.com/taxes/sales/frequency.html

Since I am not a lawyer or accountant you should of course verify with your accountant and/or S & U attorney. )

NY's quarters are less commonly used.

[Molly_Vanns]

Thanks Mellie!