Catching up with other states seeking or having broadened the term “nexus” to encompass Internet sales, the New Mexico House of Representatives recently introduced H.B. 50, its own version of an “Amazon Tax” to establish the presumption of taxability for certain sales of goods and services made over the Internet.
Should the bill eventually be signed into law, it would provide for a rebuttable presumption that a person with a business without physical presence in New Mexico is engaging in business in New Mexico (and has nexus with New Mexico) if:
(i) that person enters into an agreement with a resident of the state under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by link or an Internet Web site or otherwise, to that person; and
(ii) the cumulative gross receipts from sales by that person to customers within New Mexico who are referred to that person by all residents with an agreement exceed $10,000 in the preceding 12-month period ending on June 30 of each year.
How to rebut this presumption? With proof that the resident did not engage in any solicitation in New Mexico that would satisfy the U.S. Constitutional nexus requirements on behalf of the person presumed to be engaging in business in the state.
UPDATE: H.B. 50 was tabled by the House Business & Industry Committee within 10 days of its introduction.
Filed under: E-Commerce, Legislation Tagged: | Amazon Tax, New Mexico, New Mexico H.B. 50, nexus
