Revocation of Quill in Connecticut

In 1992, Connecticut added Special Notice 92(19) to the books for sales tax laws after the historic Quill case concluded in court. Connecticut has since revoked the Special Notice and that means changes for nexus in Connecticut for remote sellers. In 2011, Connecticut enacted a new affiliate nexus law, as other states have done, and Amazon started collecting sales tax in the state in November 2013. What does this mean for your business?

If you’re doing remote business in Connecticut, be sure to consult the Department of Revenue Service to make sure that the changes in legislation don’t change your status in Connecticut. In all likelihood, you will be able to continue business as usual as long as you aren’t using affiliate nexus programs or have any of the other main points of nexus creation in Connecticut. If you use Amazon as a vendor to send purchases to customers, be sure that your products aren’t sitting in Amazon’s new Connecticut warehouse — it was part of the state’s deal.

Amazon opened a warehouse to bring jobs to the state in exchange for not being subject to back taxes. For mail order and other remote sales, things could get tricky in Connecticut—but the real effects of the revocation of Quill remain to be seen. It could be Connecticut preparing for new federal legislation that they think might pass or it might just be a tidying of the books because other laws are sufficient. The only way to know is by taking a keen look at your business and what the revocation means for you. In the New Year, it’s a good idea to review your sales tax nexus to make sure laws haven’t changed to create nexus for your business. If you find that you now have more sales tax filings than before and need a solution to help, sign up for a free evaluation of our software to see just how easy sales tax filing can be.

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