Affiliate Nexus Tax Laws: What's an Online Retailer to Do?

The details of individual state's law varies, but each state's goal is to redefine what it means for a retailer to have a presence in a state. They're seeking to redefine it in such a way that online retailers are forced to asses sales taxes on residents in the state. The most common way legislatures do this is by defining online retailers’ relationships with affiliate marketers in the state as the basis for a "physical presence," thereby creating a business "nexus."