Several months ago after speaking to my state representative, I wrote a post about Indiana and the Advertising Tax and the fact that affiliates in Indiana were safe for the time being because our legislature had repeatedly refused to enact an Internet tax and had actually made a deal with Amazon not to make them collect the taxes in exchange for Amazon building distribution centers here. A lot has changed very quickly in the last week.
The IBJ reported yesterday that Simpon Property Group filed suit against the Indiana Department of Revenue to force the state to begin collecting sales tax from Amazon. While I haven’t yet seen the suit, the article made it sound like the issue was mainly about the distribution centers but hinted a bit about an affiliate nexus. My fears were confirmed today when the IBJ reported that an Indiana state legislator is now filing a bill that will force Indiana to collect taxes from online retailers that “have a physical presence or affiliate distributors” in the the state. The exact “nexus” language is not there, but I don’t think it’s a stretch to say that this legislation in basically going to call for an affiliate tax. [Read more…]