Affiliate / Amazon Tax: Problem of Selective Nexus Formation

Posted on4 CommentsCategoriesAffiliate / Advertising Tax, General Discussion

“Overstock is joining Amazon and Blue Nile in the parade of e-commerce companies dumping affiliates” [source]. Gov. of Hawaii, Linda Lingle, “notified the Legislature the [affiliate tax] bill was among 65 she may veto” after Amazon.com and its “sister-site Endless” have notified all HI affiliates that they are no longer on board [source].

There is no doubt that the question of the affiliate tax is by far the most burning one in the affiliate marketing circles these days. Part of the reason is, of course, the fact that merchants have already started to drop affiliates. But a bigger part of the reason is something that Lisa Picarille and Scott Jangro have touched upon in this week’s Affiliate Thing podcast. I am referring to the selective nexus formation.

Jangro mentioned that the problem is not that affiliates do not want to pay an “Internet tax”. In fact, many would be happy to. The problem, as Picarille put it, is that affiliates are being singled out to form a nexus, while other similar methods of online advertising (a banner on the website of a regional paper, for example) are not included. I encourage you to listen to the latest podcast of the “Affiliate Thing”, and stand up for our industry in your own state, as well as support those that are fighting it in NC, HI, CA, RI, and other states. If the issue isn’t yet knocking on your door, it’s just a matter of time. Your better start preparing (and acting) now.

4 thoughts on “Affiliate / Amazon Tax: Problem of Selective Nexus Formation

  1. Why is this happening in different places (Hawaii, NC) within a couple of days? Is there a danger the problem will spread to more states?

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