BizSugar.com › Online Marketing › California Considers Affiliate Tax, Illinois Sued Over Such Law

The past three years have shown how destructive these laws can be — seldomly yielding taxes, but always killing businesses. So far, out of over 20 states which have considered such legislation only 5 (NY, RI, NC, IL, CT) have enacted it; and every time it happened, merchant terminations of relationships with affiliates followed (or even preceded as was often the case with Amazon and Overstock), resulting in immediate income drops for affiliate marketers residing in these states.