HB 633 - Nexus Modernization Act

• Establishes new sections clarifying that sales tax paid on transactions, tax exemptions, and local option taxes are not affected by nexus provisions added in this act.

• Expands the definition of "retailer engaged in business in this state" to include out-of-state sellers with economic nexus through activities such as recurring solicitation, direct response marketing, affiliate referrals, and any part of the sale process occurring in-state.

• Allows out-of-state retailers to use in-state tax remittance agents to collect and remit sales tax while remaining ultimately liable for under-collection, with agents permitted to accept resale and exemption certificates in their own name.

• Reduces personal income tax rates retroactively to January 1, 2016, with the top individual rate reduced from 7.43% to 5.8% for income over $7,500.

• Reduces corporate income tax rate from 7.43% to 5.8%, effective retroactively to January 1, 2016, with nexus provisions effective July 1, 2016.