In January Governor Charlie Baker announced plans to require online retailers who have $500,000 in annual sales in Massachusetts and more than 100 transactions to collect sales tax on purchases if the online retailers use cookie data to interact and target potential customers. The proposal is based on their interpretation of the law that physical nexus is achieved if online retailers use "cookies" installed on consumers computers when they shop to optimize their online experience.  

To support the industry and the Governor’s proposal, ICSC recently submitted written testimony in favor of the Baker Administrations draft regulatory changes to 830 CMR 64H.1.7, Vendors Making Internet Sales.  ICSC continues to work with the administration as they seek regulatory approval for the change and appreciate their recognition of the crisis and continued commitment to seek redress.

It remains our hope that Congress will pass an e-fairness law or the Supreme Court will take another look at the 1992 Quill Decision.  In fact, we anticipate a South Dakota e-fairness law that is being challenged in State Court will makes its way to the Supreme Court for their consideration within the next eighteen months to two years.  

For more information, please contact ICSC Eastern Division Government Relations Chairman Stephen Burm.