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  1. #1
    Outsourced Program Manager Matt Enders's Avatar
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    Exclamation Missouri Considering Nexus Tax Laws
    It would appear that Missouri is the newest state to consider adding Nexus Tax Laws which would negatively affect affiliates.

    A colleague of mine owns an online retail website based in North Carolina. Just today, he received a letter in the mail from the State of Missouri questioning him specifically about his affiliate program as it pertains to Missouri residents. He was kind enough to share this letter with me. I scanned a copy of the letter and attached it to this post. I did of course block out all of my colleague’s personally identifiable information.

    If I'm reading it correctly, it looks like the tax fight is going to be coming to Missouri now too.
    Attached Files Attached Files

  2. #2
    Analytics Dude Kevin's Avatar
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    Thanks for sharing that, Matt.
    Kevin Webster
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  3. #3
    ABW Ambassador writerguy's Avatar
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    Oh, great. Just what I wanted to hear about. Living in Springfield, Missouri, with no way and no plans to move.

    Maybe it's time just to pack it in with the affiliate marketing stuff and get a real "job," after all.
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  4. #4
    Affiliate Manager Matt McWilliams's Avatar
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    Sure looks like they are up to something. Any Missouri affiliates have more news on this?
    Matt McWilliams
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  5. #5
    Advocate mellie's Avatar
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    I am following this issue and will have updates tomorrow.
    Melanie
    President - Affiliate Advocacy 2008 ShareaSale Performance Industry Advocate Award, 2009 Affiliate Summit Pinnacle Award - Affiliate Advocate
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  6. #6
    Moderator MichaelColey's Avatar
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    It sounds like they're not considering new laws, but just deciding that existing law causes affiliates to create a nexus. We haven't seen any other state do anything like this yet, have we?
    Michael Coley
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  7. #7
    ABW Ambassador writerguy's Avatar
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    Quote Originally Posted by MichaelColey
    It sounds like they're not considering new laws, but just deciding that existing law causes affiliates to create a nexus. We haven't seen any other state do anything like this yet, have we?
    Hmm. Makes me proud to be from Missouri. NOT! Looking and hoping for some good news about all this from mellie's update tomorrow. *sigh*

    (Just reread my post. My gosh, I'm starting to feel and SOUND way too much like Eeyore???
    Last edited by writerguy; August 24th, 2009 at 09:59 PM. Reason: Edited to add last paragraph
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  8. #8
    Analytics Dude Kevin's Avatar
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    (Just reread my post. My gosh, I'm starting to feel and SOUND way too much like Eeyore???
    Don't blame you, given the week you're having. Keep the faith.

    Once Mellie reports back, we'll figure out what to do about it...
    Kevin Webster
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  9. #9
    Affiliate Manager Matt McWilliams's Avatar
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    Quote Originally Posted by mellie
    I am following this issue and will have updates tomorrow.
    Thanks Mellie. I am glad you are on top of things!!!
    Matt McWilliams
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  10. #10
    Advocate mellie's Avatar
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    Missouri, like many other states are choosing to enforce current laws in regards to nexus. Several months ago we spoke about this here, and I also mentioned it on the Affiliate Voice Internet tax Conference call. Many states do not need to pass new legislation, it already exists.

    It is faster to enforce the current legislation.

    I am in the process of identifying the more vulnerable states but everyone should realize many states can and are doing what Missouri is. Terms independent contractors, solicitors, others.... are what will be used to determine nexus.


    This issue is exploding.
    Melanie
    President - Affiliate Advocacy 2008 ShareaSale Performance Industry Advocate Award, 2009 Affiliate Summit Pinnacle Award - Affiliate Advocate
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  11. #11
    ABW Ambassador writerguy's Avatar
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    Well, shoot. I haven't followed much of this stuff in other states, not realizing or at least not thinking Missouri was a target anytime soon.

    I guess I should do the research, but my initial PANICKY, well maybe near-panicky anyway, question is: Are the merchants I work with likely to cut off Missouri affiliates the way the good folks living in North Carolina and New York have suffered?

    Of course, I realize no one knows, but some serious opinions are welcome! LOL!
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  12. #12
    Advocate mellie's Avatar
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    As word spreads that Missouri is beginning to audit and question I would say that many may react and terminate you. Merchants should realize that nexus has already been established so removing you will not really save them.
    Melanie
    President - Affiliate Advocacy 2008 ShareaSale Performance Industry Advocate Award, 2009 Affiliate Summit Pinnacle Award - Affiliate Advocate
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  13. #13
    ABW Ambassador writerguy's Avatar
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    Quote Originally Posted by mellie
    As word spreads that Missouri is beginning to audit and question I would say that many may react and terminate you. Merchants should realize that nexus has already been established so removing you will not really save them.
    Kind of what I expect.

    I did note somewhere on ABW in a recent thread that the NC law has a threshold of $10,000 annual sales in NC -- and on that basis some smaller merchants are NOT dumping affiliates.

    Is there any way to know whether there's any threshold like that which might save us Missourians with some of the smaller affiliate programs? Anyone know?
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  14. #14
    Advocate mellie's Avatar
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    There is no threshold that will have any real effect.

    This is a battle that will be fought by merchants.

    What Missouri and other states are doing is enforcing current laws. These laws state that having solicitors, independent contractors & others is sufficient to create nexus.

    Affiliates can try and campaign for a change in law or new legislation but ...
    Melanie
    President - Affiliate Advocacy 2008 ShareaSale Performance Industry Advocate Award, 2009 Affiliate Summit Pinnacle Award - Affiliate Advocate
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  15. #15
    ABW Ambassador writerguy's Avatar
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    Quote Originally Posted by mellie
    There is no threshold that will have any real effect.

    This is a battle that will be fought by merchants.

    What Missouri and other states are doing is enforcing current laws. These laws state that having solicitors, independent contractors & others is sufficient to create nexus.

    Affiliates can try and campaign for a change in law or new legislation but ...
    Well, anyway.

    Sounds like it's time to start moving toward different "non-taxable" models of affiliate marketing.

    *big sigh*
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  16. #16
    Advocate mellie's Avatar
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    I am working on the Missouri issue, will update here and at Affiliate Voice when I can.
    Melanie
    President - Affiliate Advocacy 2008 ShareaSale Performance Industry Advocate Award, 2009 Affiliate Summit Pinnacle Award - Affiliate Advocate
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  17. #17
    ABW Ambassador writerguy's Avatar
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    I found an update of sorts regarding Missouri taxes and affiliates in this SAS blog post by Brian Littleton. Very revealing and helpful copy of a Missouri tax document attached to the blog post:

    http://blog.shareasale.com/2009/08/2...dvertisingtax/
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