Click-Through Nexus Effective in Idaho July 1

A new “click-through” nexus law, effective July 1, 2018, requires certain out-of-state retailers to collect Idaho sales tax on their sales to Idaho customers.

Nexus Conditions

Out-of-state retailers must collect the tax and forward it to the Idaho State Tax Commission if:

  • the out-of-state seller has a commission agreement with an Idaho retailer to refer buyers to the seller; and
  • total sales to Idaho buyers through these agreements exceed $10,000 in the preceding 12 months.

Qualifying referrals include:

  • website links;
  • written or oral presentations; or
  • any other similar third-party purchase opportunity.

Impact of Wayfair Decision

The Commission is currently determining how the U.S. Supreme Court’s recent decision in South Dakota v. Wayfair, Inc. affects out-of-state retailers making sales to Idaho citizens. The Wayfair ruling upholds a South Dakota statute requiring out-of-state retailers to collect and forward the tax to South Dakota if the retailer has an economic connection as opposed to a physical presence in that state.

News Release, Idaho State Tax Commission, August 15, 2018

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All stories by: CCHTaxGroup