ID H0581

Establishes the "Nexus Modernization Act" to expand Idaho's sales and use tax collection requirements beyond the physical presence standard set in Quill Corp. v. North Dakota (1992), citing advances in tax software and e-commerce technology.

Redefines "retailer engaged in business in this state" to include out-of-state sellers who engage in recurring solicitation of Idaho residents or purposefully direct business activities at Idaho residents, provided they have sufficient constitutional contact with the state.

Adds nine specific nexus-establishing activities including maintaining offices or agents in Idaho, engaging in direct response marketing (flyers, email, social media, data analytics), affiliate referral agreements, and performing any part of the sales process in the state.

Establishes a presumption that a retailer is engaged in Idaho business if a related person has nexus with Idaho and engages in certain activities like selling similar products, sharing facilities, using similar trademarks, or sharing management and business practices.

Becomes effective July 1, 2016, applying to all tax periods beginning on or after that date, with a severability clause preserving the act if any provision is deemed invalid.