Posts tagged with Affiliate Tax

Are affiliate programs dead in the U.S.?

Yesterday, California became the latest state to pass an affiliate tax law.

With a single stroke of a pen, California's governor signed AB 28 1x and may have struck the biggest blow ever to the affiliate business model in the United States.

That's because California isn't just home to a large number of affiliates, it is also widely considered to be the center of the technology universe.


2011: new year, same internet tax drama

In 2010, major online retailers in the United States which operate affiliate programs saw their businesses threatened by new state laws that would force them to collect state sales tax if they have affiliates in the state.

Despite the fact that these laws don't generate the revenue they're supposed to, and typically spark high-profile backlashes, it appears that the push to tax internet retail through 'affiliate taxes' will continue into 2011.


Amazon battles new use tax assault

State-level bureaucrats in the United States have their eyes fixed on Amazon and other online retailers. The reason: online shopping, in theory, results in less tax revenue for their states because these retailers don't collect sales tax in states in which they have no physical presence.

Up until now, a number of states have sought to force Amazon and others to collect sales tax through legislation that would use in-state affiliates to create 'nexus'. With nexus established, online retailers would be legally responsible for collecting sales tax.