| $5 submissions |
02-16-2011 04:47 PM |
Having affiliates marketing in a state = STATE TAXES?
For a state to tax a business, there must be sufficient "nexus" between the business' activities and the state.
Texas has a new bill that says that MERELY ADVERTISING within a state through AFFILIATES THAT ARE STATE RESIDENTS means they can tax that commerce.
Source: http://www.legis.state.tx.us/BillLoo...2R&Bill=HB1317
Quote:
(d) For the purpose of this subchapter and in relation to
the use tax, there is a rebuttable presumption that a retailer is
engaged in business in this state if the retailer:
(1) enters into an agreement with a person who is a
resident of this state under which the resident receives a
commission or other consideration for directly or indirectly
referring potential customers to the retailer by any means,
including by a link on an Internet website; and
(2) during the previous four calendar quarters
received at least $10,000 in cumulative gross receipts from sales
to consumers located in this state who were referred to the retailer
by residents under agreements described by Subdivision (1).
(e) The presumption under Subsection (d) may be rebutted by
proof that the resident with whom the retailer has an agreement
described by Subsection (d)(1) did not engage in any solicitation
in this state on behalf of the retailer that would satisfy the nexus
requirement of the United States Constitution during the period
described by Subsection (d)(2).
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This was tried in Rhode Island and the result weren't good: See http://blog.affiliatetip.com/archive...eter-business/ |
