ID H0155

Revises the definition of "retailer engaged in business in this state" to require retailers to engage in recurring solicitation or purposefully direct business activities at Idaho residents with sufficient constitutional nexus to collect use tax.

Expands the definition to include retailers maintaining any physical presence in Idaho (offices, warehouses, distribution centers) directly or indirectly, or through subsidiaries or agents.

Includes retailers with representatives, agents, salesmen, or solicitors operating in Idaho for selling, delivering, installing, or taking orders for tangible personal property.

Establishes an affiliate nexus provision covering retailers with agreements compensating in-state persons (directly or indirectly) to refer purchasers if cumulative gross receipts from referred purchasers exceed $10,000 in the preceding 12 months.

Allows retailers to rebut the affiliate nexus presumption by establishing that no in-state persons engaged in solicitation that would satisfy U.S. constitutional nexus requirements during the relevant 12-month period; authorizes the State Tax Commission to promulgate rules administering this provision.