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September 22nd, 2009, 12:39 PM #1
The Latest W/ Tax Laws
- Join Date
- April 23rd, 2009
I'm having a pretty difficult time finding which states have passed the Affiliate Tax Laws and which are still thinking about it. The latest I know is that:
CT, TN, MO are thinking of passing it.
NC, RI, NY have passed
HI, CA are not passing it.
Can anyone update me on the latest? And are there any links you may have to help. Also, what are the qualifications in these states for qualifying for nexus?
September 22nd, 2009, 12:48 PM #2
NC, NY, RI passed.
Ca passed but vetoed by governor; will be back next session
Hi passed but vetoed due to technical flaw in wording of title & bill - Will be back and pending in new session.
CT was pending, put aside added to budget bill removed at last minute, will be brought up again in next session
Tn was never completed, it was in committee while they waited for research to be completed, will be back
Mo is currently enforcing their current nexus guidelines and is considered to be a tad more agressive.
Several other states had pending legislation and many more are talking about it for next session.
Next session includes next regular session AND emergency sessions that can be called at any time.
It is important to understand that many states, at any time, can alter their interpretation or choose to enforce current legislation that may impact a merchant. It is important to contact a sales and use tax attorney to ensure you are in compliance. No one on this board is qualified do that.
If you want links to other states I am in process of adding State Resources to http://affiliatevoicellc.com, about halfway through.
September 22nd, 2009, 10:36 PM #3
MN bill was vetoed by the Governor.
September 23rd, 2009, 08:07 AM #4
MD: The Maryland bill died in committee on the last day of the 2009 legislative session. It will be back next year (January). The Gov has recently found "another" 300 mil in state deficits.
September 23rd, 2009, 09:20 AM #5
Il, In, Fl, Ut, Tx, Ma, Pa, ...... all spoke about redefining (modernizing) nexus definition or enforcing /interpreting current laws to include affiliate marketing or performance marketing. Everyone really needs to read current definition. Don't just be concerned with new legislation.
And Bill is right, Maryland is one of the many states that have announced they will bring it up again. Hawaii, Ct, Ca, Mn, Mo are just a few of the other states that have made these public announcements. There are several threads in this forum with updates. Might be worth the time to read through all the threads to see how everything played out and learn how we can all really prepare.
November 5th, 2009, 05:33 PM #6
does anyone know if the 2-step process that is so nicely outlined on the NY Affiliate tax nexus forum is also the same process needed in NC and RI?
The Affiliates of New York Present the Tax Solution
As a result of the efforts of the Affiliates of New York and all of their supporters (both known and unknown) we are proud to offer the following information.
There are two simple steps merchants and affiliates need to take to comply with the NY tax law.
There are two documents to download that include steps merchants need to take and more importantly, sample agreements.
Here is a brief summary:
Step one is to add terms to affiliate agreement. Out of state merchants need to add a contractual condition to their affiliate program terms that prohibits New York affiliates from solicitation activities.
We now have the paragraphs that need to be added to terms.
Step two is Proof of compliance. This is accomplished by requiring affiliates to submit on a yearly basis, a signed certification that they, the affiliate, have in the previous year complied with the terms of the agreement. This agreement is due on or before May 31 of every year and must be retained by the merchant.
We now have a sample agreement.
Here is the link to our version of letter outlining steps to take and all the sample agreements. Letter to merchants outlining Merchant's Two Steps to Comply with NY Internet Tax Law http://docs.google.com/Doc?id=dhb7zz4d_10fjfnjqdq
We are also providing the lawyers' version of letter to merchants. This detailed versions offers some background information and additional details that some CFO's, CEO's and others might prefer. Detailed Information on How to Comply with Tax Law http://docs.google.com/Doc?id=df8mcjj8_2fv5dqtc3
President - Affiliate Advocacy 2008 ShareaSale Performance Industry Advocate Award, 2009 Affiliate Summit Pinnacle Award - Affiliate Advocate
NYAffiliateVoice Seery Writing
Thanks in advance for your help
Affiliate Program Manager
November 5th, 2009, 06:43 PM #7
First a disclaimer: I am not a sales and use tax attorney nor am I an accountant so I cannot give advice. All I can do is share my understanding.
All merchants should retain a sales and use tax attorney to ensure they are in compliance in all states in regards to sales tax.
For information on the two steps, you should use this document http://docs.google.com/Doc?id=df8mcjj8_24gq3gb6fg There was one slight change that we had to add.
The NY solution was created by a NY Sales and Use Tax attorney that we hired and was based on the TSB's released by the NY revenue department. NY revenue department has issued guidelines for rebutting the nexus and our solution is based on those guidelines. (NYS indicated last year that they would release sample document but do not appear to have done that yet). That solution is outlined with sample documents at the url I provided in my paragraph above.
It is our current understanding that NC and RI have a different interpretation. Various questions have been posed to both NC and RI revenue department regarding the ability to rebut the presumption of nexus. Unfortunately they have indicated there is currently no procedure or guidelines for rebutting nexus. Their answer to me and to others has been no on the solution posted above.
Merchants and or affiliates will need to hire a sales and use tax attorney to identify a solution if one exists. Unless of course the NC and RI revenue departments release clarification or guidelines. It is unlikely that they will unless pressured by merchants.
I am going out the door again today but will check back again tomorrow. Feel free to email me for some resources. I will also post them here as soon as I get a chance.
January 21st, 2010, 03:01 PM #8
Just saw this at Affiliate Advocacy
New Mexico has formally joined the affiliate tax battleground. House Bill 50 has been introduced. "House Bill 50 – New Mexico Internet Sales Tax" . If this legislation passes and is put into effect, out of state merchants may be required to collect and remit sales tax on sales into New Mexico. This legislation appears to be more similar to the New York version.
You can view a pdf of the bill at http://legis.state.nm.us/Sessions/10...use/HB0050.pdf
January 21st, 2010, 05:34 PM #9
January 21st, 2010, 05:39 PM #10Originally Posted by MattMcWilliams
Thanks for posting John.
I just started a new thread http://forum.abestweb.com/showthread.php?t=128627 to make sure everyone knows.
January 21st, 2010, 05:44 PM #11
January 21st, 2010, 07:58 PM #12
- Join Date
- February 5th, 2009
I might have missed it in this thread, but if it hasn't been mentioned Colorado isn't passing a law because they don't think they need it. They plan to issue new tax guidelines which will require payment of sales tax by merchants. I find this a little unsettling (I am in between two homes, and actually have some accounts listed as NY and others (notably CJ where I have earned zero, so it's academic) listed as CO) because issuing guidelines just happens, while legislation follows a process that can be monitored. In any case, anybody who is in CO should be aware. I assume that the usual merchants will drop CO affiliates if this comes to pass.---
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