Why Should I Care?

Legislation has been enacted in 8 states with proposed legislation in 6 others, forcing out-of-state retailers to collect sales tax, closing the tax loophole that online retailers have taken advantage of for many years.

The legislation claims that small businesses that handle advertising for those out-of-state retailers create the physical presence (or ‘nexus”) needed to force the out-of-state retailers to collect the sales tax.

However – these State-level attempts to force out-of-State retailers to collect sales tax with “Nexus Laws” have failed for the following reason:

  • Out-of-State retailers have instead just canceled their advertising contracts in effected States.
  • This has led to many businesses being forced to leave the effected State in order to save their businesses.
  • This, in turn, means that no “Nexus” is in place – which means no tax revenue for the State.
  • No revenue, lost revenues for marketers, and no fair playing field for retailers. That’s a Lose-Lose-Lose.

    What can happen if a “Nexus Law” is passed in your State?

    Your online business opportunities will be limited and hampered by misguided laws that place undue burdens on running a Web-based company.

    Partners, consultants, contractors, and other service providers in other states will not want to work with you because your location in a state with these laws will impact them.

    You are at risk of losing 25 to 50 percent of your income.

    You will have to move your business from states that enact these taxes and seek locations that provide a more business friendly climate.

    You may have to lay off employees if your business loses a significant portion of your income.

    You, personally, may have to seek government assisted unemployment if you lose your income.

    How you can help fight these misguided state-level laws.

    We need your help opposing these State-level laws creating a harmful cycle in which nobody wins. You need to take action to protect your small business. Until the Federal Government takes action to actually solve the problem, States will continue their harmful approach.

    Take Action