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Why Affiliates Need To Care About The Affiliate Nexus Tax

Why Affiliates Need To Care About The Affiliate Nexus Tax

The Affiliate Nexus Tax is an attempt by states to declare that having affiliates in a given state means the company has a presence in that state and is liable for sales tax. For many online merchants, they would rather drop all their affiliates in a state that has passed legislation, rather than pay the tax. New York was the first state to pass a Nexus law and over 200 merchants terminated their affiliate programs including Amazon and Overstock. In total, more than 75,000 affiliate marketers have been affected, causing many to move or give up their business. This tax has already been enacted in 9 states (AR, CA, CT, GA, IL, NY, NC, PA, & RI) it’s being introduced in 9 more (CO, FL, IN, KS, LA, MA, MI, MN, & UT), and will continue to expand as long as legislators starving for tax dollars look for more revenue. The reality is that no state has seen increased revenues from this law given how many small businesses are negatively affected because programs just drop their affiliates. This is an issue for all merchants and affiliates in the US, even if legislation hasn’t reached your state yet. If these laws continue to spread, it may simply make it too difficult for merchants to run affiliate programs, which would impact your livelihood.

How Can I Help?

The Performance Marketing Association is in the midst of a legal battle where they've taken the offensive against the state of Illinois in regards to the Affiliate Tax. Whether you live in Illinois or not, this battle is relevant to you. In Illinois, they’ve been successful in having the affiliate nexus law declared unconstitutional, but the state has filed an appeal – although the Performance Marketing Association strongly feels their case is weak.

This fight isn’t free. Last year the PMA raised and spent over $340,000 to defend our industry. Here’s what you can do to help…

We’re asking you for a contribution to the Performance Marketing Fairness Fund to support the effort of protecting these affiliate programs. We’re asking for a $50 contribution, but please give whatever you can, whether it’s more or less.  It only takes a minute and you can contribute through paypal here:

 Why Should I Donate?

  • Because Illinois, and the nexus tax, are vulnerable.
  • Because if the Performance Marketing Association wins (this time against the appeal), it will be a significant blow to the existing and proposed affiliate tax laws.
  • And because it gives the Performance Marketing Association, who are fighting for our industry - your livelihood - a significant advantage in their efforts. If we don’t fight the appeal, that advantage shifts to the states, and businesses will be at even greater risk than they are today.

Your contribution will go a long way to protect this industry!