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:

Georgia Governor Nathan Deal signed legislation requiring online retailers to either collect and remit sales tax or notify customers of taxes due to the state. Since the Utah legislature has not successfully passed a bill to force out of state companies to collect taxes, the state’s Tax Commission has been securing deals with individual companies including Amazon, Lyft, Spotify and Netflix. Iowa passed a tax bill which increases collection of online sales tax on online services. Louisiana passed a bill requiring online retailers to collect and remit sales tax in the final minutes of their legislative session; the previous legislation only required notification of taxes owed.  eBay asked their sellers to sign a petition opposing online sales tax; the plan is to present it to the President, members of congress and state governors. Meanwhile the industry is awaiting the Supreme Court’s decision on South Dakota v. Wayfair. Small business owners voiced their concerns at an eBay expo. Amazon released third-party seller data to the New York State Tax Department; this could affect all marketplace merchants such as Etsy or Bonanza. The Supreme Court decision is expected mid-month.