Had no idea that affiliate programs were causing so much juicy controversy! Learned the story of Connie who runs FlamingoWorld who opposed a bill in Minnesota that would tax sales generated by affiliate marketers as if they were directly selling or drop shipping inventory.

Let's imagine the following scenario to see why Connie opposed the bill (NOTE: I am not a lawyer)

- You need your taxes done

- You're going to hire someone to do it

- Accountants in your state must charge sales tax for their services

You liked the work of the accountant so you told a few people. Next time you go into your accountant, they mention four people had their taxes done because of your good words (aka referrals). They want to give you a break on your taxes to say thank you. You accept.

Should now be responsible for paying taxes as if you had done the tax returns for those four people?

Heck no!

In this case, you've accepted payment in the form of a gift or discount. This isn't the same as doing the actual taxes of the people you referred and potentially owing tax.

Thank you Connie for standing up for us in Minnesota!