Seven states are currently taxing out-of-state online retailers. The practice, called the “Affiliate Taxes” or “Amazon Taxes”, are spreading rapidly as the catalog loophole that has protected them for years is being re-evaluated. What does this mean from one state to the next? Which states are doing it, which states are considering it, and which states are safe.
Perhaps most importantly, what does all of this mean for the future of online retailers?
These and other questions are discussed in this infographic by our tax-talented friends at Intuit. Click to enlarge.
4 Comments »
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Thanks for posting. Even if legal and affiliates did collect tax, it represents only 20% of online sales. That leaves a lot of tax fruit on the tree. Clearly this is only a bandaid fix. Worse is that affiliate nexus is being challenged in NY and IL. The law is unconstitutional. These websites and blogs that advertise commissioned ads get pennies in commissions if the item sells. Declaring them as ‘employees’ of the advertising company is ludicrous
In the title: “Spread” not “spead”
Thanks for spotting that – we’ve corrected it