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:

Missouri, Indiana, South Carolina, Georgia, Nebraska, Utah and Idaho legislators introduced bills to collect internet sales tax in that state. Hawaii lawmakers recently discussed the possibility of an internet tax for that state. Massachusetts Gov. Baker intends to propose an internet tax for that state. Mississippi Attorney General Jim Hood has prioritized pursuing a state internet sales tax as well. Tennessee Chambers of Commerce have made passage of the Remote Sellers Rule a top priority for 2017, while others in the state understand the complexity of the legislative issues involved. Iowa businesses couldn’t celebrate the Jan 1 implementation of nexus tax collection by Amazon; Gov. Terry Branstad believes that Amazon will build a distribution center within the state shortly. Gov. Andrew Cuomo intends to expand New York’s current internet sales tax legislation. Amazon will begin collecting sales tax in South Dakota, Vermont, Missouri, Mississippi and Rhode Island on Feb. 1 and in Wyoming on March 1. Overstock.com has stated they will report but not collect Colorado sales tax. Accounting Today anticipates a surge of sales tax reporting laws in 2017. The New York Times also analyzed the online vs. brick-and-mortar debate.