As predicted, on August 7 2009 Governor Beverly Perdue signed the 2009-2011 North Carolina Budget. As a result, the Internet Sales tax will take effect on September 1. You can read more about this at NYAffiliateVoice – North Carolina Budget Signed. As requested by Affiliate Voice members, I provide more detail there and give the shorter version here, enabling you to choose the one that fits your schedule.
The new legislation included in Senate Bill 202 (the 2009-2011 Budget) redefines nexus in North Carolina to include some out of state merchants. The new criteria for nexus includes out of state merchants who have affiliates (or publishers / advertisers) who in total have $10,000 in sales from NC affiliates to NC residents for the previous four quarters combined. Merchants, please, contact your own attorney or accountant for advice as to the impact on you. You want to retain the advice from a North Carolina sales and use tax attorney. A specialized sales and use tax attorney may be able to give you the best advice. You can also try contacting the North Carolina Department of Revenue for information and clarification of the new definition. As merchants evaluate the impact of the new nexus law I urge them to make educated decisions.
- Link to North Carolina Department of Revenue http://www.dornc.com/index.html
- Link to North Carolina Budget Bill (SB 202) http://www.ncleg.net/Sessions/2009/Bills/Senate/PDF/S202v8.pdf
We will continue to monitor for any developments in North Carolina and elsewhere.
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