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:

Small business owners worry that Colorado’s new online sales tax rules will put them out of business as they must deal with over 600 different taxing authorities. Alaska is now considering an online sales tax. An online sales tax bill was among the first bills filed for the January session of the Arkansas legislature. Governing.com forecast that states may not collect as much in online holiday sales tax as originally projected. Connecticut’s legislation requiring marketplace facilitators such as Amazon or Etsy begins Dec. 1stLouisiana will not be ready to enforce sales tax collection beginning Jan 1, 2019, due to technical issues. At the Federal level, Re. Jim Sensenbrenner introduced the No Retroactive Online Taxation Act of 2018 to protect remote sellers from tax liabilities for sales that occurred prior to the SCOTUS Wayfair decision on June 21, 2018.  Internet Retailer prepared a list of all 24 states with online sales tax laws effective Dec. 1st.