Maryland affiliates will have a couple of months to get ready. State Senator Madaleno has announced that in January 2010 he will once again introduce new nexus legislation. His proposed legislation will require out of state merchants who have affiliates or advertisers in Maryland to collect sales tax on sales to Maryland residents. Calling it an E-fairness bill, the proposed legislation will be similar to the one presented in last legislative session. As you will recall, the introduction of the proposed legislation occurred too late and legislators were unable to complete passage. Senator Madaleno believes that his legislation will generate $7.5 million a year and is looking forward to establishing a fairer playing field.
The proposal in Maryland was similar to the legislation that exists in New York, North Carolina and Rhode Island. In Maryland the prosed legislation had a threshold of $10,000 in sales in previous four quarters. It is important to note that even with similar or identical legislation interpretation may differ between states.
As you recall, just a few months ago, merchants terminated relationships with affiliates in states with pending legislation. While legislation was still an idea, affiliates were terminated. If you are an affiliate living in Maryland I urge you to get involved now. Get in touch with me so I can help you organize and prepare your business. Education, organization and preparation are critical.
To join a group to work on this issue contact me at Affiliate Voice LLC.
Similar information was also posted at Maryland Gear Up Again