Proposed Legislation for 2010
California: Assembly Bill 2078 is included in the Democrats' 2010 budget proposal and would impose an "affiliate nexus tax" on all purchases made online from out-of-state retailers.
Connecticut: House Bill 8154 would enact an "affiliate nexus tax" on all purchases made online.
Florida: Senate Bill 204 would have established Streamlined Sales Tax in Florida, with the goal of extending the sales tax to out-of-state online purchases. The bill died in Committee on Finance and Tax on Friday, April 30, 2010.
Illinois: Senate Bill 3353 would impose an "affiliate nexus tax" on all internet purchases.
Indiana: House Bill 250 would apply the sales tax to sales of digital goods and also conforms the state's tax code to the Streamlined Sales Tax.
Maryland: Senate Bill 824 would apply the sales tax to all products purchased online from out-of-state retailers.
Mississippi: Senate Bill 2927 would have enacted an "affiliate nexus tax" on all online sales made by in-state consumers. Out-of-state retailers would have been required to collect the tax and remit it back to Mississippi. The bill died in Committee on February 2, 2010.
New Mexico: House Bill 50 would establish an "affiliate nexus tax." The measure would require out-of-state retailers to collect tax on New Mexico consumers and remit it to the state.
Nevada: Gov. Jim Gibbons has proposed an "affiliate nexus tax" in this year's budget.
Vermont: House Bill 661 would establish an "affiliate nexus tax" on all online sales made by Vermont consumers.
Virginia: Senate Bill 660 would have established an "affiliate nexus tax" in Virginia, subjecting all online sales to taxation. On March 1, 2010, while in the House, the Senate Bill 660 was tabled in Finance by voice vote. Additionally, Senate Bill 705 would have taxed all digital goods, as well as raised a number of other taxes. While in the Senate, SB 705 was defeated in Finance February 16, 2010.
Washington: House Bill 2620 further clarifies legislation from last year that enacted a digital goods tax on online consumers.
Overview of Passed eTax Legislation/Regulation
While the federal "Internet Tax Freedom Act" was passed in 1998, preempting states from taxing internet access, at least nine states that imposed taxes prior to the bill's adoption were "grandfathered in" and permitted to continue collecting the tax. They include Hawaii, New Hampshire, New Mexico, North Dakota, Ohio, South Dakota, Texas, Washington, and Wisconsin.
In 2009, an effort to collect taxes on internet access in Louisiana was defeated in committee, largely due to the federal preemption.