More states are following New York’s lead with the so-called “Amazon Tax.”  This tax establishes nexus in New York if any company uses an affiliate in the state of New York.  So, let’s say your California based business sells a product to a customer in Texas.  Under current law, your CA business would collect and remit TX sales tax, if your CA business has nexus in the state.

But now let’s say your company has an affiliate program in New York.  New York wants the tax.  But so does Texas.  What to do?  Most companies have dropped affiliates in New York because they don’t want to go there.

Now, North Carolina, Hawaii and Rhode Island have all jumped on the band wagon with their own version of the “Amazon” tax.   And true to form, companies are dropping affiliates who live in these states.

If you want to be an affiliate marketer, you’ve now also got to look at where you live!  Amazing times we live in.  This move which was supposed to increase revenue has just cost thousands of people their at least part time livelihood.