Arkansas Enacts ‘Click-Through’ Nexus If Remote Sales Through Affiliate, Facilitator

Arkansas enacted legislation (S.B. 738) subjecting a remote seller to sales and use tax jurisdiction if the seller uses an affiliate or facilitator to sell, promote, distribute, store, or deliver the seller’s products in the state.

The legislation, enacted April 1, establishes a presumption that a seller’s use of an affiliate or facilitator creates sales tax nexus, which can be rebutted if the seller demonstrates that the affiliate or facilitators “are not significantly associated with the seller’s ability to establish or maintain a market in the state for the seller’s sales.”

An “affiliate” is defined by the legislation ...