BizSugar.com › Online Marketing › Advertising Through an Affiliate Program? Compliant with Nexus Tax?

There are 9 states which have enacted the so-called "Amazon tax" (or affiliate nexus tax) laws. A general rule of thumb is that out-of-state merchants/advertisers who in any given year exceed $10,000 sales threshold to customers residing in the tax law state in sales (which have been referred by affiliates residing in the same state) are subject to a sales tax. If you market through affiliates, but aren't yet collecting sales tax in these 9 states, re-think your approach today!