Affiliate tax

Our network is closely monitoring the latest information on several proposed "Nexus Tax" laws in multiple states (also called the Advertising Tax / Affiliate Tax / Amazon Tax). While some of these bills were defeated, several more are under consideration that will impact the affiliate marketing industry. These taxes could directly impact your business and your source of income.

Why does this matter?

In most cases these bills require merchants to collect and remit sales tax from residents of those states because of working with affiliates in that state. As a result, some merchants may choose to end their relationships with resident affiliates to avoid this expense. For specific information on how this tax will impact your business, please contact your tax accountant.

The YELLOW states below to review the state’s respective law/statute.
GREEN states indicate a bill, or bills that were ruled invalid through the court process.
RED states indicate a bill that is introduced and being considered by state legislature.

*Map courtesy of the Performance Marketing Association

Recent news and updates:

Sales tax collection began in California on April 1^st. Another new California law will now require marketplace merchants such as Amazon or Ebay to also collect on behalf of out-of-state sellers meeting a $500,000 threshold. Louisiana is considering a constitutional amendment to lay the foundation for online sales tax. Legislation also passed in Missouri, Massachusetts, Georgia, Idaho and Arkansas, and is in development in Florida, and Indiana. Hawaii has modified their nexus rules to mirror South Dakota; bill has been sent to Governor for signature. Collections from the new online tax were below 2018 levels in Connecticut. Cities are fighting with counties in Alabama over sales tax proceeds. Things will be a little quieter as virtually all of the legislatures have adjourned for the summer. Most activity will involve plans for new legislation in the fall, though nothing can be introduced until the new session begins.