For over a year we have attempted to increase awareness of the need for affiliates to be proactive. Being proactive means much more than panicking when your state begins to ponder new legislation to redefine nexus or retailer. Being proactive means taking action long before legislation is pending. It means educating yourself as to the current law, becoming familiar with your state’s legislature and preparing your business.
I have received numerous emails asking me how. Here are the steps every affiliate should take.
- Find the website for the government agency responsible for collecting sales and use tax. You should know your state government website so start there, otherwise use your favorite search engine to identify website. Department of Revenue, Department of Finance, Taxation Bureau are some examples of the agency responsible for collecting sales and use tax.
- Find the current definition of nexus, “remote retailer” or “doing business”. Determine if it could possible affect you. Does it contain words like independent contractor, other representatives, solicitor?
- Identify your state’s legislature website. Become familiar with navigating through the website and how to follow or subscribe to pending legislation.
- Identify your state level representatives (Senators and Representatives). Locate their regional offices. Call and arrange a meeting to introduce yourself.
- Identify Finance Committee Chairs and Committee Members. Keep this information on file.
- Monitor pending and proposed legislation, once found subscribe to follow the bill. You can also set up Google alerts for keywords related to sales and use tax.
- Keep an eye on the budget bills and emergency legislative sessions declared.
- Prepare your business. Identify merchant relationships that may be at risk. If your merchant does not currently collect sales tax for online sales in your state you make be at risk for being terminated. Do not assume they collect sales tax online, verify! Identify replacement merchants ahead of time.
- Ask questions. Ask your revenue department, your accountant, your program manager, or even ask me at Affiliate Voice. Together we can find answers.
You may look at the above list and say “I have to do all that??”
Yes you do! This is YOUR livelihood at stake.
It may take you a couple of hours but isn’t it worth it? Set aside one morning or one weekend day to get it done. It won’t take long. Once you do the initial steps it will only take you a few moments every week to check legislation.
At this point in time, after all we have been through can you honestly think your business is not at risk? Can you honestly believe that your state won’t take action? If you believe you are safe and your state will never take action take a moment and talk to any affiliate from NY, RI, NC and MO. Don’t forget to speak to a HI, CA, CT, MN affiliate too.
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