On Monday, March 27th, I did the 3+ hour drive from home (south of downtown Houston) out to Austin. My destination was the state capital building – on the agenda for the Ways & Means Committee was HB1317. Similar (almost exactly the same, really) to the bills passed in other states, HB1317 aims to force out-of-state retailers to collect and remit sales tax on purchases made by Texans based on the re-definition of “nexus”.
Under current law, a company with “nexus” is defined as having a physical presence in the state. Apple collects sales tax on online purchases because they’ve got Apple stores here in Texas. Headquarters, distribution centers, retail locations – physical presence is the test. HB1317 seeks to redefine “nexus” to include affiliate marketers.
In this special episode of Inside Internet Marketing, I recap my trip to Austin to protest that bill, and I’ve got a great interview with Rebecca Madigan of the Performance Marketing Association.
Even if a bill isn’t being brought up right this second in your state, watch out. I didn’t think there would be one here, either.