Budget Amendment ID: FY2012-S3-17

OTH 17

Protecting Main Street Retailers

Mr. Tolman moved that the proposed new text be amended by inserting at the end thereof the following new section: -

SECTION 1. Section 1 of chapter 64H of the General Laws, as appearing in the 2008 Official Edition, is hereby amended in line 265 by striking out the definition of "Vendor" and replacing it with the following:—

“Vendor”, a retailer or other person selling tangible personal property or services of a kind the gross receipts from the retail sale of which are required to be included in the measure of the tax imposed by this chapter, including any person making sales of tangible personal property or services taxable under this chapter by soliciting business through an independent contractor or other representative if the vendor enters into an agreement with a resident of the commonwealth 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 vendor, if the cumulative gross receipts from sales by the vendor to customers in the commonwealth who are referred to the vendor by all residents with this type of an agreement with the vendor is in excess of ten thousand dollars during the preceding four quarterly periods ending on the last day of February, May, August, and November. Such vendor shall be presumed to be soliciting business through an independent contractor or other representative, a presumption which may be rebutted by proof that the resident with whom the vendor has an agreement did not engage in any solicitation in the commonwealth on behalf of the vendor that would satisfy the nexus requirement of the United States constitution during the four quarterly periods in question.