Then one day an email came and said "I am sorry to have toto remove anyone from our affiliate program, but due to the enactment of internet nexus tax laws in Rhode Island, we can no longer accept publishers from the state into our program. I encourage you to contact your local legislators to express your thoughts and concerns on the law, and to check out the Performance Marketing Associationfor more information on the nexus tax.
Now, mind you I had added hundreds of products to these sites, that I had to take down immediately. And then the little ads I had as well. I was not happy. I have not had much time yet to investigate further except that I did learn Rhode Island was not the only state. There are other states such as" New York, California, Illinois, North Carolina, Arkansas and Connecticut. So if you live in those states you may want to check it out first.
The law requires online retailers with sales affiliates based within their borders to collect sales tax.
California's law also extends the obligation to collect sales taxes to online retailers that have subsidiaries or affiliated companies in the state.
I had no problem paying taxes that were due so I don't understand why these companies would not want to keep us as affiliates - unless they felt they would have to chase people in these states for the money?
We still have a few affiliates that did keep us.
Have you worked with affiliates and came across this Nexus Tax situation too?
You can also learn how to stop etaxes here too.
