Over the past year and a half I have urged every affiliate to be proactive. Earlier today I posted Hey Affiliates, Know Your State’s Nexus Definition at my Affiliate Voice LLC blog. In that post I outline the simple but critical steps every affiliate should take. These steps involve educating yourself as to the nexus definition for your state and preparing. You need to prepare for pending legislation and prepare your business model.
Preparing for pending legislation is important and involves steps you need to take now, long before new legislation is proposed. First steps involve identifying how to monitor legislation, knowing your legislators and of course, preparing your business. Preparing your business is knowing which of your merchant relationships are at risk if new nexus laws are enacted. These steps must be completed before the new legislative sessions begin. As we saw several times in recent months legislation can move slow one moment and swift the next. Please review my post at Affiliate Voice blog for additional information on the steps you should take.
Affiliate Voice is again urging every affiliate to be proactive. Learn the nexus definition for your state. The reason is several states are taking action to enforce current laws. They have determined that there is no need for new legislation, existing laws are enough. If your state’s current nexus law includes terms such as solicitors, independent contractor, other representatives or similar wording you may be at risk.
Some states like Missouri, Texas and Michigan have been said to be contacting merchants questioning in state activities to determine if nexus exists. They are seeking to enforce current legislation or to alter interpretation. Merchants should consult with a sales and use tax attorney to ensure they are in compliance. Nexus may have already been established so removing affiliates will not remove the nexus.
Affiliates need to be proactive and prepare. To assist you, I have been adding State Information and Resources at Affiliate Voice Blog and AffiliateVoice.com – Internet Sales Tax and Advertising Tax. Again, merchants should seek professional advice and guidance on these issues.
Please contact Affiliate Voice if you would like to help on any issues and to sponsor our work.