5 Important News from the Affiliate Nexus Tax Front Lines

Much has happened on the affiliate nexus tax front since my last post on the subject two weeks ago. Sadly, most of these news aren’t positive ones, but how could they be when we’re talking conditions that make it hard for businesses to function?

Today I’d like to highlight 5 important news and developments for you. Here is my list (in reverse chronological order):

1. Advertising Tax Hits Arkansas — Governor Beebe signed the bill into law, making Arkansas “the fifth state to enact this sort of small business killing legislation.”

2. Texas Affiliates Testify at Senate Hearing — “Texas Senate Finance Committee put the Affiliate Nexus Tax bill (SB 1798)” on hearing agenda again; so around thirty TX-based affiliates went to testify against the bill, and express their concern (see also this post).

3. Merchants Terminate Illinois Affiliates — Multiple merchants have terminated relationships with IL-based affiliates “due to the enactment of the Illinois advertising-nexus law”. Among them: Amazon and Endless.com, Zappos and 6pm.com, Overstock, Diapers.com, Soap.com, CSN Stores, and others.

4. Overstock’s Bold Move: Sending a Message to the States — Overstock announces “it is taking the money it spent on affiliate advertising prior to the [affiliate nexus tax] laws passing, and giving it back to its customers who are part of their Club O loyalty rewards program.”

5. FatWallet Moves Operations to Wisconsin — FatWallet.com leaves “Illinois for Wisconsin as a direct result of the recent tax legislation passed in that state last month” [source]. Governor Walker welcomes FatWallet assuring they “are not going to raise taxes as it would drive jobs out”.

If I have missed anything that must be mentioned here, please post about it in the “Comments” area below. Your constructive input in always greatly valued.

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