If you’ve been following along, 2011 has been a turbulent year for affiliate marketers in those states that have passed an affiliate nexus tax law. Affiliates in impacted states have been forced to move to a different state, make do with less revenue, or in some cases, shut-down their business. You may recall that VigLink opted to move our Chicago office to Indiana this past spring after an Affiliate Nexus tax bill passed in Illinois.
However, last month, a possible solution to the proliferation of state-level Affiliate Nexus Taxes appeared. Federal legislation was introduced in both the House and Senate that would create a national framework for collecting sales tax at the state level on online purchases, thereby pre-empting state-level affiliate nexus tax laws that have already been enacted or proposed for passage.
We’ve long felt that a Federal solution to collecting sales tax on online purchases is the best solution to the Affiliate Nexus Tax Laws — and would lead to the reinstatement of affiliate marketing programs in affected states. Over 60,000 affiliate marketers around the country have been affected by affiliate nexus taxes so far, making the business benefits of a national solution immediate and substantial.
As a result, we encourage you to learn more about each of these bills, and to stay up-to-date on what you can do to help as the bills progress through both the House and Senate. The Performance Marketing Association will be shifting their grassroots campaigns to focus on these Federal bills and will be sharing information on how individuals can voice their support in the near future. Submit your contact information here if you’d like to be kept up-to-date on developments.
Here’s to a great 2012 for affiliate marketers everywhere!