What Should an Affiliate Do When Their State Passes an Affiliate Nexus Tax (Amazon Tax)

by Deb Carney on July 2, 2011

This is an ABCs Plus Special edition podcast that is being posted to Affiliate ABCs, Blogging ABCs and Merchant ABCs because of the importance of the issue. Your hosts Vinny O’Hare and Deborah Carney are joined by Karen Garcia, Outsourced Affiliate Program Manager to try and explain the Affiliate Nexus sales tax laws that states are enacting to attempt to get more companies to collect their state sales tax even though the companies do not have a physical presence in their state. States are trying to establish that affiliates and affiliate marketing gives companies a physical presence in their state, making the merchants liable to collect sales taxes in states they shouldn’t have to.

Some Resources we mention:
Coffee Talk with James Martell, Karen Garcia and Jeannine Crooks

PMA List of States and their status and links to their bills.

NexusAware – a listing of what companies already have to collect sales taxes is what states

There is a lot of information out there and much confusion by affiliates, merchants, bloggers and even the legislators themselves. If you are in a state that hasn’t passed this tax yet, check and see if they have a law drafted or on the table. Basically states are treating this as an amendment to their state sales tax laws and not as new laws, so they pass easier and sometimes with no press about it at all.

Please feel free to contribute additional information in the comments. We are not lawyers, so you need to check with a local lawyer familiar with internet law if you are in an affected state.

What we also discuss in this podcast is how affiliates can find merchants that already collect sales tax in their state, what types of merchants that sell items that are exempt and how to talk to your merchants to find out how they are going to handle it if their state passes such a law.

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