Any Minnesota Affiliate Tax Issues?
Hello - I am new to WA and a resident of the state of Minnesota. I have learned that Minnesota has laws in place that identify sales made through affiliate links as taxable. To be clear I am not referring to paying my personal income tax, this is referring to the company selling the product paying a sales tax to the state of Minnesota - even though they may not have a presence in the state.
I would like to ask if there are any other affiliates from Minnesota (I'm sure there has to be) or anyone who is familiar with these types of laws.
I know for a while Minnesota affiliates were banned by Amazon for this reason, but earlier this year Amazon has allowed them back and is collecting Minnesota state sales tax.
What do I need to be aware of regarding this issue? Are there companies that won't allow Minnesota affiliates? How do I find that out?
Thanks for any insight you might be able to share regarding this issue.
Recent Comments
2
Hi,
You are correct. I am enrolled in Amazon's Affiliate Program and was told I had to stop because of Illinois law. Our law was pronounced unconstitutional by the Illinois Supreme Court in 2014, and we now can be in the affiliate program.
However, if anyone lives in the following states: Arkansas, Colorado, Maine, Missouri, Rhode Island, or Vermont, they cannot be an active affiliate of Amazon, as stated in the affiliate agreement.
Amazon does give you some notification before they dis-activate your account with them.
I want to wish you all of the best as a successful online marketer not only with WA but also with Amazon too.
George
Thanks George. On a side note I found out the reason that Amazon now allows Minnesota affiliates is because they will be building a distribution center here - so they will have a physical presence in the state. Because of that, they have been paying the Minnesota state sales tax since October of last year and Minnesota affiliates are no longer banned. Lucky for me I guess, I dodged a bit of a bullet there. I'm guessing the issue may still show itself though if I apply to be an affiliate with other companies but maybe I'm wrong. I do feel for people in the other states you mentioned that had their affiliate business affected by these types of tax laws or want to start an affiliate business and find themselves with a bit of a disadvantage.