Some states apply tax on digital advertising, which includes all purchases of Zillow Premier Market Based Advertising (“MBP”), including Lender Co-Marketing. If your state requires tax, it will be applied to your invoice. Below you’ll find a list of FAQs to address any additional questions.
Question |
Answer |
Why am I being charged tax? |
Some states impose tax on certain products and services, including those delivered electronically. MBP purchases and co-marketing are taxable in a limited number of states. |
How does Zillow determine whether tax is required in a particular state? | Legislation differs state-by-state and determines how Zillow is required to tax the sale of digital advertising purchases. |
Will my partner lender be charged tax? | Yes, if Zillow is required to collect tax in your partner lender’s state, then they will be charged tax based on the time they were actively co-marketing. Below is more detail on tax and tax rate applications. |
How will tax impact the 50% threshold for my lender? | Your partner lender can still contribute up to 50% of your campaign budget. They will be taxed in addition to their share of the budget. |
If my partner lender fails to pay their share of the invoice, then will I be invoiced for the full campaign amount? | Partners are responsible for paying for MBP advertising in-full before their campaign begins, which includes tax. If a lender fails to pay their share of the invoice, then the agent will be responsible for the full campaign budget. |
What if my business is exempt from tax? | If you believe your business is exempt from tax, please email taxes@zillow.com to set up an exemption. |
Can I deduct tax from my business income? | Taxes may be deductible as a business expense. Please consult with your tax professional. |
How is tax calculated? | The amount of tax charged on MBP products is calculated based on the business billing address in the partner’s profile. Lender co-marketing is taxed based on the lender's business billing address in their lender billing portal. State and local tax rates are applied based on the tax rates for that location. |
What happens with the tax after it's collected? | Collected taxes are remitted to the relevant tax authorities. |
As a lender, can I review the tax applied to my monthly budget before my purchase? |
Yes, but after the invoice is generated for active days co-marketing. When lenders accept the co-marketing invitation, they will be shown their monthly spend amount without the tax amount and a disclaimer about applicable tax, then prompted to confirm their business billing address and add payment method. Tax will be applied to their invoice created on the next agent bill date, which they can find under the “Invoices” tab at the top of the page, then lenders will be billed in arrears. |
Where will tax appear on my invoice? | Tax will be displayed as “Tax Amount” in the bottom portion of your invoice. |
How can I update my business billing address? | You will be able to update your business billing address through your co-marketing dashboard: Lender Hub > Co-marketing > My address. |