Affiliate Nexus Tax Coming to Arizona and Minneapolis

amazon taxIf 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.

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Amazon Associates gives Hawaii the boot!

Yesterday I received an e-mail from the Amazon Associates Program informing me that my Associates account has been closed as of June 30, 2009. Here’s the e-mail itself:

Important Notice from the Amazon Associates Program - Posteingang - 'Yahoo! Mail'

Despite efforts from Hawaiian Amazon Associates throughout April 2009 and May 2009, Amazon decided to pull the plug on the Hawaiian Associates program.

The Motley Fool reports on a similar move of Amazon in North Carolina.