Internet Tax

Federal and state legislative activity surrounding the internet retail tax remains high. It’s important to understand the legislation — both passed and proposed — that may affect your business.

Click on each state to see what’s going on, or download all activity in chronological order.

Federal Legislationv

Marketplace Fairness Act
The current, proposed legislation is the Marketplace Fairness Act, which would enable state governments to collect sales taxes and use taxes from remote retailers with no physical presence in a state.

The US Senate voted in favor (69 to 27) of The Marketplace Fairness Act, which would allow the 45 states (and the District of Columbia) that currently charge sales taxes to require online retailers with at least $1,000,000 in annual sales in a state to collect sales tax from purchasers in that state. Under current Federal law, online retailers are only required to collect sales tax in states where they have a physical presence. The Act must still be approved in the US House of Representatives before becoming law; however, if passed, the Marketplace Fairness Act may alleviate qualifying states from having to pass affiliate nexus tax legislation in order to require online retailers to collect and remit sales tax.

This information is not tax or legal advice, it does not necessarily represent CJ Affiliate's position(s). It is provided as a courtesy for your convenience. CJ shall not be responsible for the accuracy of such information, especially considering a portion of the information may be provided by third parties. We therefore disclaim all liability and responsibility arising from any reliance placed on such information.