Tennessee ~ Sales and Use Tax: Governor Signs Bill to Implement Amazon Agreement

Tennessee Gov. Bill Haslam has signed legislation that codifies the terms of an agreement between the state and Amazon, under which the company agreed to collect Tennessee sales and use tax beginning in 2014. The bill provides that the activities of distribution facilities operated by a company’s affiliates in Tennessee are not considered in determining whether the company has a physical presence in the state sufficient to establish nexus for sales and use tax purposes. The company is required to provide notice of use tax liability to Tennessee purchasers. The company must also send each Tennessee purchaser an annual statement of the total sales made to the purchaser during the preceding calendar year. The provisions will be repealed on the earliest of: January 1, 2014; upon an affiliate’s failure to satisfy investment or job creation requirements; or the effective date of any federal legislation that authorizes the state to require remote sellers to collect tax.

H.B. 2370, Laws 2012, effective March 26, 2012

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Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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