Affiliate tax

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.

nexusmapfeb

*Map courtesy of the Performance Marketing Association

Recent news and updates:

Numerous states are still wading through legislation in response to the Wayfair v. South Dakota decision, including Missouri, Louisiana, New Hampshire, Virginia and Alaska. Colorado has finally passed legislation simplifying the tax collection process. According to the Tax Foundation, most states are not legislatively compliant with the terms established in last year’s SCOTUS Wayfair decision. Congress is considering the Digital Goods and Services Tax Fairness Act of 2018, designed to prevent duplicative taxation and different tax rates on digital goods.