Senate Bill 269 Summary

• Expands the definition of "retail merchant engaged in business in Indiana" to include arrangements with any person (other than common carriers) to facilitate delivery of property to customers in Indiana, such as allowing customers to pick up orders at in-state facilities.

• Allows persons to be required to collect and remit sales or use taxes if they conduct activities in Indiana on behalf of a retail merchant that are significantly associated with the merchant's ability to establish and maintain a market in Indiana.

• Creates rebuttable presumptions that a retail merchant is engaged in business in Indiana if: (1) an affiliate has substantial nexus in Indiana and meets certain criteria regarding similar products, shared branding, or use of similar trademarks; or (2) the merchant has agreements with one or more Indiana residents referring customers with cumulative sales exceeding $10,000 in the preceding 12 months.

• Applies the use tax nexus provisions only to remote sales transactions occurring after June 30, 2014, based on when the agreement was entered into, payment was made, or delivery occurred.

• Effective July 1, 2014; the transactional applicability provisions expire January 1, 2016.