RSA 78-E:2 · Definitions

78-E:2 Definitions. – In this chapter:

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I.

"Foreign taxing authority" means an agency or other instrumentality of, or a person acting on behalf of, a foreign taxing jurisdiction that is authorized to administer, audit, and enforce sales or use tax laws of the foreign taxing jurisdiction.

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II.

"Foreign taxing jurisdiction" means a state, territory, the District of Columbia, a local government, political subdivision, or any other entity which assesses a retail sales tax or use tax on its persons with respect to the use, storage, and consumption of goods and services.

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III.

"New Hampshire remote purchase transaction" means any sale of services or goods, or both, for any purpose other than resale in the regular course of business where the customer takes possession of the services or goods in a foreign taxing jurisdiction.

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IV.

(a) "New Hampshire remote seller" means any individual, trust, estate, fiduciary, partnership, corporation, or other legal entity, including a retailer as defined in RSA 78-D, located within the state, that engages in New Hampshire remote purchase transactions, and that does not have a physical presence within the foreign taxing jurisdiction.

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(b)

For purposes of this paragraph, a person has a "physical presence" in a foreign taxing jurisdiction only if such person's business activities within the jurisdiction include any of the following:

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(1)

Maintaining its commercial or legal domicile in the foreign taxing jurisdiction;

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(2)

Owning, holding a leasehold interest in, or maintaining real property for business purposes such as a retail store, warehouse, distribution center, manufacturing operation, assembly facility, or any other facility in the foreign taxing jurisdiction;

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(3)

Leasing or owning tangible personal property for business purposes (other than computer software) of more than de minimis value in the foreign taxing jurisdiction;

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(4)

Having one or more employees or independent sales persons present in the foreign taxing jurisdiction actively soliciting sales;

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(5)

Maintaining an office in the foreign taxing jurisdiction at which it regularly employs 3 or more employees for any purpose.

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(c)

For purposes of this paragraph, the term "physical presence" shall not include:

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(1)

Entering into an agreement under which a person, for a commission or other consideration, directly or indirectly refers potential purchasers to a person outside the foreign taxing jurisdiction, whether by an Internet-based link or platform, Internet website, or otherwise;

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(2)

Any presence in a foreign taxing jurisdiction, as described in this paragraph, for less than 15 days in a taxable year (or a greater number of days if provided by foreign taxing jurisdiction law);

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(3)

Product placement, setup, or other services offered in connection with delivery of products by an interstate or in-state carrier or other service provider;

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(4)

Internet advertising services provided by in-state residents which are not exclusively directed towards, or do not solicit exclusively, in-state customers;

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(5)

Ownership by a person outside the foreign taxing jurisdiction of an interest in a limited liability company or similar entity organized or with a physical presence in the foreign taxing jurisdiction;

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(6)

The furnishing of information to customers or affiliates in such foreign taxing jurisdiction, or the coverage of events or other gathering of information in such foreign taxing jurisdiction by such person, or his or her representative, which information is used or disseminated from a point outside the foreign taxing jurisdiction; or

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(7)

Business activities directly relating to such person's potential or actual purchase of goods or services within the foreign taxing jurisdiction if the final decision to purchase is made outside the foreign taxing jurisdiction.

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V.

"Person" means any individual, trust, estate, fiduciary, partnership, corporation, or any state, territory, the District of Columbia, a local government or political subdivision, or any other legal entity.

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VI.

"Private customer transaction information" means, with respect to any New Hampshire remote seller, any documents, records, and other information possessed or maintained by a New Hampshire remote seller in any form which contain information concerning the name, address, or telephone number of any customer, or any other information related to a customer such as credit card, debit card, or checks used to complete a customer transaction, a description of the goods or service purchased, the identity of any person for whom the goods or services were purchased, and the identification of the point of transfer of any goods or services that comprise a transaction of sales used for the calculation of sales or use tax liability.

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VII.

"Streamlined Sales and Use Tax Agreement" means the Streamlined Sales and Use Tax Agreement as adopted and amended from time to time by the Streamlined Sales Tax Governing Board.

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VIII.

"Written notice" means a notice in writing, by physical letter, addressed and physically mailed to the New Hampshire department of justice. No other form of notice shall be deemed to meet the requirements of this chapter. Source. 2019, 280:1, eff. July 19, 2019.

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