Minnesota Looks in Direction of Affiliate Sales Tax

Posted on1 CommentCategoriesAffiliate / Advertising Tax, General Discussion

Following the example of the state of New York, in late January of this year Minnesota introduced their bill S.F. No. 282 proposing to collect tax on “sales to customers located in the state who were referred to the retailer by all residents” of the state. So, in addition to California, there is also Minnesota now.

In her today’s blog post Melanie Seery wrote:

…the next hearing date on their pending legislation is to be held on Thursday, March 26, 2009 at 08:30 AM in Room 15 Capitol.

If the bill passes, it will take effect with sales after June 30, 2009.

Minnesota estimates increased revenue of around $22 million. That increased revenue plus their observations of the impact of the NY nexus ($60 million in revenue?) leads me to believe that Minnesota will pass this bill.

The precedent set in the State of New York last year is already turning into a “nasty” one as other states are considering following the same model. Connecticut, Illinois, Tennessee and Hawaii are being said to be on their way as well. Some senators, however, seem to be taking a different root, and this is certainly good to see (read about Senator Enzi’s Sales Tax Fairness and Simplification bill here).

More resources currently available on the subject of the Minnesota affiliate sales tax bill, and its implications, are listed below:

One thought on “Minnesota Looks in Direction of Affiliate Sales Tax

  1. Just saw that ABestWeb.com now has a special section [see it here] where you can read and discuss the most recent developments on the Minnesota, California, New York, Connecticut, Tennessee and Hawaii affiliate tax bills.

    By the way, Melanie has reported today that the Hawaii “committee voted to recommend passage” of their bill, while Amazon earlier stated “that if the law passes they will terminate affiliates from Hawaii.” Tense times.

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