[mellie]

So far today I have heard from two affiliates in Wisconsin who have been removed from programs because of online sales tax issues. There are at least 2 programs that have removed Wisconsin affiliates. The reason for the removal was that Wisconsin has stepped up audits on out of state merchants.

If there are any affiliates in Wisconsin who would like to talk or email other affiliates from Wisconsin please get in touch with me either through here or through contact page at Affiliate Advocacy.

[bookdrawer]

I was contacted today by another vendor who has terminated due to the Wisconsin law. I was unaware of anything going on in our state although I was keeping up with what was going on with the Nexus laws in other states.

Wisconsin has always asked us to report any out of state taxes on our purchases but I guess most people don't that must be why they are taking steps. I can't seem to find anything on the web about what is going on but if I can help out in any way please contact me.

[mellie]

Originally Posted by bookdrawer

I was contacted today by another vendor who has terminated due to the Wisconsin law. I was unaware of anything going on in our state although I was keeping up with what was going on with the Nexus laws in other states.

Wisconsin has always asked us to report any out of state taxes on our purchases but I guess most people don't that must be why they are taking steps. I can't seem to find anything on the web about what is going on but if I can help out in any way please contact me.

Thanks for updating us.

You can't get pms yet so send me contact info ( affiliates at affiliateadvocacy )

If you could send me the name of the merchant I would appreciate it. I would like to follow up with them. (Your name will be kept confidential )

There are actually affiliates in several states who are being terminated, none of these states have proposed any new legislation.

[Patrick Vesperman]

mellie - have you heard anything about a sales threshold like in NY, NC or RI?

[mellie]

There is no threshold. I wrote about it at Affiliate Advocacy but will repeat some of it here for convenience.

Along with questionaires being received, this appears to be what is causing the terminations:

Definition of Nexus - Sales and Use Tax (sec. 77.51(13g)(d), Wis. Stats.)
This provision expands the definition of "retailer engaged in business in this state" to specifically include any person who has an affiliate in Wisconsin, if the person is related to the affiliate and if the affiliate uses facilities or employees in Wisconsin to advertise, promote, or facilitate the establishment of or market for sales of items by the related person to purchasers in Wisconsin or for providing services to the related person's purchasers in Wisconsin, including accepting returns of purchases or resolving customer complaints.
...

The new definition continues but I think merchants are stopping when they read "affiliate".

Extremely important for merchants to seek qualified advice - that advice must com from a sales and use tax attorney or qualified accountant. No one here is qualified to interpret Wisconsin sales and use tax law.

[WP]

I have also been removed from the Garden supply co. affiliate program. Are all the companies planning to follow?

[RebeccaMadiganPMA]

We have been trying to figure out what happened here. One advertiser told me he just terminated after reading the Wisconsin law clarification, because he saw the word 'affiliate', but now is realizing he made a mistake. I have spoken to about 1/2 dozen policy experts today, all of who have said there is no discussion in Wisconsin about advertising tax legislation. I heard from 3 large networks who do not have any merchants who have terminated Wisconsin affiliates. I have spoken to 2 very large advertisers who do not interpret this definition as having anything to do with online affiliates. And I've spoken with 3 internet attorneys who agree that the Wisconsin definition is using the term 'affiliate' to refer to something completely different.

The PMA cannot offer any guidance, we are not lawyers, but we can refer advertisers to some experts. If you'd like more information, please email me at rebecca@performancemarketingassociation.com.

[mellie]

The terminations are also stemming from the nexus questionaires that are being received by multiple merchants.

Combine the questionaires with the lawyers and accountants doing cursory review of the revised nexus regulations and merchants are choosing to remove affiliates from Wisconsin. Similar situations in other states.

I have spoken to a few other merchants who are debating taking similar actions.

[seaturkey]

still sounds like the MN law has nexus issues. Has it been passed?

[RebeccaMadiganPMA]

Minnesota proposed an advertising tax last year, but it was defeated. We haven't seen anything come up again this year.

[bookdrawer]

A Linkshare Merchant Gardener's Supply reinstated me today saying the Nexus law did now pass in Wisconsin. Not sure what happen but I am glad because gardening season is starting soon....