If you are an affiliate located in Arizona or Minnesota, then beware the online taxman!
Both states are considering adoption of the Affiliate Nexus Tax. Basically, the law says if an online retailer has affiliate marketers in the state, then the retailer is responsible for collecting and remitting sales tax. As a result, if the law is passed, hundreds of merchants may decide to terminate their relationship with you.
Problems with Affiliate Nexus Tax
Bills of this ilk are often mistakenly informally referred to as “The Amazon Tax” or “Internet Tax.” But these names are misleading because the tax, which is complex and takes on many different forms, singles out just one group within the online advertising space: affiliates.