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Many States Adding Internet Tax

As I have mentioned several times, there is pending legislation in many States to add and or enforce the requirement to collect of sales tax rather than leaving it as a use tax. Remember, the sales tax is due, the only thing that is changing is the method of collection. When a merchant collects it, it is called sales tax. When a customer has to remit it to their State it is called use tax.

Minnesota, Connecticut, California, Illinois, Tennessee and Hawaii are just some of the States with pending or proposed bills that will change the definition of nexus or require sales tax to be collected. I have written several times that every affiliate in every State needs to monitor the legislation in their State. Merchants and networks also need to keep informed. Just about every state is beginning to crack down on some of the loopholes as I mentioned in New York, New Nexus, New Affiliate Taxes.

Some of the pending and proposed Internet tax laws closely mimic the New York legislation, others are closer to the California version. I suggest that you visit your State’s government page. Go to the Legislation page and search through the bills by using a keyword search.  Try the words – sales tax, nexus definition, nexus, affiliate nexus, vendor definition, use tax and similar words.

If you find a bill make note of the status. Your next step should be to educate yourself as to the process of how a bill becomes a law.  If the law has not yet passed you have time to take action to make sure the law is fair and balanced. Decide if you can attend a public hearing, email or call committee members or your representatives. Let others know what you learn, share information with other affiliates in your State. If you want help in getting the word out, let me know what you learn and I can share it here.

If you find that the law has already been passed by your State Assembly and Senate, determine if it has been signed by the governor. Learn when it takes effect and make sure you are ready.

Review Next Steps for Merchants and Affiliates and How California Affiliates Can Prepare (simply substitute your State name for California).

If you have any questions feel free to ask.

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