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Does an agent's promotional activity (not mine) trigger nexus for me?

Full Question: Assume my product is a unique line of "clothing" for dogs available only online from my NY based business. A pet store owner with locations in NY, NJ and CT will not stock my product in his store however, he is willing to produce a flyer and give it to his customers when they check out of his store. I am willing to pay him 10% of sales for any of his customers that make a purchase from my website. It's clear to me I need to collect sales tax on the items I ship to NY customers. But, does the store owner's promotional activity (not mine) trigger nexus for me in CT and NJ?

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Answer:

Diane Yetter photoAt this time, the type of promotional activity likely will not create nexus in CT and NJ. However, the states could take the position that the local retailer is acting as your agent. There are some states including NY, RI, NC, IL, and AR that have taken the position that paying a commission for referrals through a web page will create nexus for the remote seller (you). This is the subject of significant activity at the state level and something you will need to monitor.

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