Just weeks after Illinois Governor Pat Quinn signed an anti-small businesses bill into law, Arkansas Governor Mike Beebe has done the same thing.
SB 738, which Governor Beebe signed into law, requires online retailers to collect sales tax if they have affiliates in Arkansas and generate more than $10,000 a year in sales in the state.
Arkansas is the fifth state to enact this sort of small business killing legislation. Illinois, New York, North Carolina, and Rhode Island have previously passed similar laws.
The way it has played out in those states has been for the affiliate programs to kick out their affiliates, so customers continue to make purchases without paying sales tax, but the affiliates are then out of work.
Yesterday, Lisa Picarille and I interviewed Tim Storm, CEO of FatWallet.com, on the Affiliate Thing podcast.
We spoke about how the law passing in Illinois is forcing him to move his company out of state to remain in business. FatWallet.com has 55 employees, and they will soon be working in Wisconsin, where Governor Scott Walker has vowed not to sign such legislation if it comes across his desk.
Listen to the Affiliate Thing episode with Tim Storm.