Amazon to Drop NC Affiliates if Advertising Tax Passes
The latest development in the advertising tax front is not good news at all. North Carolina is so close to enacting the anti-affiliate sales tax that Amazon just sent notice to all NC affiliates letting them know that if the law is passed Amazon associates in the state will be dropped immediately.
“We regret to inform you that the North Carolina state legislature (the General Assembly) appears ready to enact an unconstitutional tax collection scheme that would leave Amazon.com little choice but to end its relationships with North Carolina-based Associates. You are receiving this e-mail because our records indicate that you are an Amazon Associate and resident of North Carolina.”
It goes on to say this is not a termination yet, they are just letting affiliates know in advance because it looks imminent.
If this bill passes other states will follow and if Amazon drops affiliates other merchants will follow. We’ve been doing a good job of beating back the taxes in other states, I sincerely hope NC ends up voting this down. NC affiliates and merchants, you need to contact your state representatives NOW!
Shawn Collins at AffiliateTip has the full quote plus a wealth of other resources, so head over for more info. Advertising Tax Moving Forward in North Carolina
UPDATE 6/17: Matt Enders and his company mgecom are organizing a meeting and efforts to fight the NC tax. Please see this post for more info.
Fighting the Affiliate Tax in North Carolina
UPDATE 6/19 - Motley Fool has a great article today and this quote really sums the issue up well.
Why Does North Carolina Hate Amazon? – Motley Fool
“If Amazon delivers on its threat, no one will win. Amazon will miss out on the leads. Its affiliates in North Carolina will lose their commissions. And the state will miss out not only on the 4.5% sales tax it would be collecting from Amazon, but also on the revenue-generating nibble from Amazon’s commissions that generate taxable income for its affiliates. The Amazon Associates program also provides an attractive revenue stream for stay-at-home moms and other home-office-based Web entrepreneurs, so forcing Amazon out could also make the unemployment lines longer in North Carolina.”
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#1 Mike wrote on Wednesday, June 17th, 2009:
Tax on “digital downloads”! What a crock of sh*t.
Im looking at this bill and ill be damned if i ever vote for any of these morons again. I don’t care if they are democrats or republicans, a moron is a moron.
Of all the places to try and tax.. you think these affiliates are making a fortune off of digital downloads? Please… this subsidizes the crap nc salaries since we’ve lost our furniture and fiber production by pulling revenue from oversees and other states. I work in NC, and have lived in Raleigh. Someone asked why they don’t go after the banks instead? Raleigh is afraid to because they are in Charlotte the real capitol of North Carolina.
Spread the word… read the bill see who signs it and kick the morons out after their terms are up. We may not have the money to pay lobbyist to wine and dine these swine, but we can vote by golly.
Spread the word… take a stand.
#2 billythekid wrote on Wednesday, June 17th, 2009:
how ridiculous?!!
and i thought when ebay in 2008 made it their policy to stop people selling ebooks in digital format was ridiculous. This has certainly topped it.
even though i dont live in the states, we are seeing more and more knee jerk reactions to the economic crises. Policies that should not stick, if the people have their say
#3 Linda Buquet wrote on Wednesday, June 17th, 2009:
Hi Mike and Billy, thanks for weighing in. I know it’s frustrating and sure hope the bill does not pass.
#4 InternetStarter wrote on Wednesday, June 17th, 2009:
Would this effect Google Adsense?
#5 Linda Buquet wrote on Wednesday, June 17th, 2009:
Hi InternetStarter,
I have not personally read all the language in the bill but I doubt Adsense would be affected.