Arkansas enacts affiliate nexus legislation

April 6, 2011

It’s official: Starting this summer, online retailers with affiliate marketers in Arkansas will have to collect sales tax on purchases by Arkansas residents.

This article in Internet Retailer confirms that Overstock.com is canceling its relationships with affiliates in the state:

By the end of today, Overstock will have sent notices to all of its Arkansas affiliates that it will no longer do business with them as of May 1, unless they re-locate to another state without a similar affiliate tax law, president Jonathan Johnson says.

No word yet from Amazon, but we expect that it, too, will soon cancel its relationships with Arkansas affiliates.

We continue to believe that federal legislation in the form of the Main Street Fairness Act is a better solution than affiliate nexus legislation, and we hope to see it enacted soon.