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Massachusetts adopts regulation imposing bright-line sales tax nexus standard on remote internet vendors

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The Massachusetts Department of Revenue has adopted a regulation that requires out-of-state Internet vendors to collect sales or use tax if they meet certain sales and transaction thresholds. In addition to establishing a bright-line nexus standard, the regulation explains how the Massachusetts general sales and use tax jurisdictional standard applies to Internet vendors, and how the regulation complies with the Due Process and Commerce Clauses of the U.S. Constitution as well as the Internet Tax Freedom Act (ITFA). The regulation is very similar to administrative Directive 17-1 that the Department issued and revoked earlier this year.