[Rich Owings]

Hi,

First of all, thanks to Melanie for the excellent conference call today. I was on the road, listening on my cell, but when I got home, I started to research rebutting nexus. I'm still a bit fuzzy on the concept.

Can anyone help with these questions?

1. Can a publisher (as opposed to a merchant) rebut nexus?

2. Would doing so require me to block in-state traffic to my site, and is that even possible?

[mellie]

The answer to your first question is the easy one.
Only merchants can rebut the presumption of nexus. Only a merchant has nexus ("physical presence"). Affiliates can create, or contiribute to creating a nexus, but they can't rebut it, it's not their's to rebut.

Number 2 is a bit harder, most likely this will have to be presented to a NC sales and use tax attorney.

Remember, only a NC Sales and Use tax attorney that you retain can give you advice. We can only give information and suggestions to point in the right direction.

[Rich Owings]

Well, even if I could technically pull off number two, I doubt that I'm big enough game for Amazon to let me stay in the system. Thanks though!

[markwelch]

I posted a response on the issue of a web publisher blocking or throttling in-state traffic, in this discussion thread (post #8) (http://forum.abestweb.com/showthread.php?t=120937)

[knight01]

This is possible through ip lookup and then re-direct based on results, however the reliability is always subject to concern as it's not always accurate.

Also, would a merchant want to accept the risk and costs involved in monitoring an affiliate setup of this type? Probably not.

[Magi]

Wouldnt Networks be able to provide this service?


If a user clicks on a affiliate link to a merchant who has a nexus issue .. couldnt the network just redirect it to a different page or some info screen?

[mellie]

Wouldnt Networks be able to provide this service?


If a user clicks on a affiliate link to a merchant who has a nexus issue .. couldnt the network just redirect it to a different page or some info screen?

From a technical standpoint, Networks can easily do it, if they want. They and merchants will need to run it by their legal. I do not know if nexus is removed simply because there is no commission paid because the sale generated by the affiliate still exists. It will be necessary to retain a sales and use tax attorney in each state to examine this proposal. We can not give advice/opinion on this. Every state will /may have a different interpretation of the law. What works in one state may not work in another.