Hey Everyone, looks like there is another State entering into the #advertisingtax mix.
The below document is already a State regulation – and is now being used broadly to target Merchants with affiliate programs.
Some interesting notes from the regulation document:
- In order to qualify under the term of “Vendor”, total gross receipts in the State of Missouri (solicited in Missouri, and sold to Missouri resident) must be $500,000 or more in the preceding calendar year. (A company also qualifies if total U.S. gross receipts equal or exceed $12.5 Million). A company can also qualify as a vendor if they have a physical presence or sales agents in Missouri.
- Directly from the document:
A vendor does not have sufficient
nexus if the only contact with the state is
delivery of goods by common carrier or mail,
advertising in the state through media, or
occasionally attending trade shows at which
no orders for goods are taken and no sales are
The entire document can be found here: http://blog.shareasale.com/wp-content/uploads/2009/07/12c10-114.pdf.
We strongly recommend contacting your legal advisers regarding this to determine if you have any liability.
Affiliates (in the Affiliate Marketing world) place advertisements on their websites in return for monetary compensation based on how well those ads work.