By Trisha Lyn Fawver
If ever a cause was near & dear to me, this is definitely one of them. As an affiliate manager, affiliate marketing is my livelihood. Over the last year, several states have introduced legislation defining affiliates as tax nexus for businesses. This means that if a merchant has affiliates in a state with this kind of law, they are required to charge sales tax for all online orders made to customers in that state.
This started in May 2008 with New York, and quickly spread to California, Minnesota, Rhode Island, North Carolina, Hawaii, and other states. Affiliate marketing advocates were successful in stopping the laws from passing in most states, however Rhode Island and North Carolina have passed similar laws to New York.