Amazon Cuts Off Affiliates In Hawaii And Rhode Island... Who Else Wants To Try?
from the you-might-make-them-angry dept
Last week, Amazon decided to cut off North Carolina affiliates due to proposed legislation that would have affiliates (really, advertisers) be considered as local "employees" for the sake of proving that Amazon had a business "nexus" in the state, and thus need to collect state sales tax there. It appears similar legislation is popping up across a bunch of states, and Amazon is cutting off affiliates one by one. Affiliates in both Hawaii and Rhode Island have been told that they can no longer sell via Amazon over this issue. It'll be interesting to see if any states back down. Pissing off a bunch of small business owners who make money selling products via Amazon probably isn't a particularly wise thing to do in the middle of a recession.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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Filed Under: affiliates, hawaii, rhode island, sales tax
Companies: amazon
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backfire
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Re: backfire
Sure it is. Once you open the tax door you can never close it, and it will only become more and more. Greed has no limit. The only way you can stop it is by not letting it happen in the first place.
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Re: backfire
I think Amazon is on the right side of this one.
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www.chl-tx.com (Thanks, BHO, for the wonderful stimulus you have given *my* business!)
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Re: backfire
I applaud them for taking a stand against what is 100% greed and money-grabbing. The states think they can just start grabbing revenue from everyone online and unless someone like this takes a stand and shows them who is really the boss (the citizens, not the governmental officials), this will just get worse and worse.
This also demonstrates what needs to happen any time a state or a business tries something like this. Boycotting works. It works very well. Anyone else think this is exactly what should happen to the RIAA?
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Amazon & Sales Tax
I have found since this happened, that I can use them to find items, but buy direct from the seller or go with another seller that is a few cents higher and save a lot, as most sellers won't ripp you on the taxes, (if there are any) and really do honor "free shipping".
Don' use Amazon for your purchases, they are just a search engine that is charging you as a consumer for being the middle man, and making a big profit in the process.
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Re: Amazon & Sales Tax
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At least in MD
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Re: At least in MD
So many problems with that statement, I know, but a few years ago NY actually tried going after people who bought clothing in NJ (No Sales Tax in NJ on clothing (at the time)), not sure how all that played out.
More recently they are doing it with cigarettes...
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Re: At least in MD
big ole GRIN ......
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Most people know Amazon directly now, so why pay to advertise when you no longer need to? Seems to be a way for Amazon to get out of the affiliate program business.
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Hmm..
I agree that it is a right move for Amazon, and they have made a lot of money in taking big risks, many of which have paid off.
As fare as the AC who said "why use affiliates", that is a simple answer. Amazon is well known, but affiliates often point directly to products or categories that are about the topics that their websites, or content are about. This catches the consumer when they are ready to buy. A "win-win" scenario for all involved.
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States wouldn't need to pass these laws
Amazon wouldn't have to cut these states off if the citizens paid their taxes like they are supposed to.
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Re: States wouldn't need to pass these laws
On the internet, there is no way for the state to monitor these purchases or to determine with absolute certainty that any given item was purchased by a resident of their state...
One suggestion is to enact a national sales tax similar to VAT in the EU but also include a means where a consumer or business could "trade" the native tax rate where the good or service is purchased to their local tax rate. In this scenario, the seller would be responcible for collecting the tax due and remitting the appropriate ammount to their state tax agency (consumer does not choose to trade tax rates) or to the tax agency of the purchaser’s home state.
This would raise overall prices however to account for the additional overhead associated with administration and enforcement, but it would have a far better chance of success than relying on tax payer honesty...
JMHO
Mike
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Re: Re: States wouldn't need to pass these laws
> account for the additional overhead associated
> with administration and enforcement, but it
> would have a far better chance of success than
> relying on tax payer honesty...
Or the frakking government could just spend less money instead of engaging in this never-ending quest for more and more of its citizens' money.
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Re: States wouldn't need to pass these laws
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I love it when businesses do not roll over and play dead by simply accepting anything the politicians try and pull.
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See, I don't understand that.
If I go to Jersey and buy something, I pay sales tax there on that item. So, IF I obeyed the laws, I would have to pay an additional TAX on that item because I am a resident of another state?? i.e. pay NY and NJ sales tax on a candy bar?!
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Re: Anonymous Coward
I don't know how your state handles it, but Utah, where I live, requires that I you paid less tax in the other state than you would in your home state, you must make up the difference. If you paid more tax there than you would here, you don't have to pay any additional.
This is not a new tax, by the way, folks, the states are simply trying to get the online retailers to collect existing sales tax just like a brick and mortar store does. That's called equal treatment. Furthermore, Amazon knows how to do it. They already collect taxes on purchases made through other retailers websites they run, like Target's. We shouldn't be falling for their bull. Amazon just doesn't want to be a good corporate citizen.
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Good corporate citizen?
A good citizen - corporate or otherwise - isn't defined by whether you pay taxes. Or if you just bend over and take any government mandate. You are a good subject to the state, but not a good "citizen".
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stand your ground Amazon!
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