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.

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.

affiliate tax

*Map courtesy of the Performance Marketing Association


Recent News and Updates:

Oklahoma’s Retail Protection Act began on November 1st, requiring out-of-state retailers to either charge sales tax to Oklahoma customers or provide a statement of their tax liability at the end of the year. Amazon and 73 other online retailers began collecting sales tax in Alabama as well. The Ohio Supreme Court has ruled that the state can impose an online tax on companies selling to Ohio residents. Online tax legislation has passed out of committee to be presented to the full legislature in Wyoming. Nebraska retailers are pushing their legislature to enact online sales tax legislation. Similar legislation in Tennessee is not expected to survive in committee.  Online Florist American Business USA Corp is asking the Supreme Court to review the 1992 Quill decision due to their reverse situation – the seller is physically present in state but both the customer and goods are located out of state. Mississippi has joined 10 other states urging the Supreme Court to do so as well.