Tennessee Nexus Bill Signed Into Law

On March 26, 2012, Tennessee Governor Bill Haslam signed into law L. 2012, H2370, which results from a compromise between the state and Amazon.com regarding affiliate nexus. Federal case law establishes that a seller must have sufficient connections, or nexus, with Tennessee in order for the state constitutionally to subject a seller in the state to sales and use tax collection responsibilities. This law provides requirements for determining whether affiliates have physical presence in Tennessee sufficient to establish nexus with the state.