Affiliates: Amazon Threatening Cuts Over State Taxes

This is kinda the start of a new trend, which should be noted. States are broke and looking for money. They are going to try to start taxing more transactions on the Internet.

From the Wall Street Journal:

North Carolina is close to passing a law that would force online retailers to collect the state’s 4.5% sales tax from marketing affiliates, people who get a sales commission from online customer referrals. Amazon, of Seattle, Wash., told its North Carolina marketing affiliates on Wednesday that it would stop doing business with them by July 1 if the law takes effect. Cutting the affiliates would enable Amazon to avoid collecting tax on sales in the state.

The interesting thing here, for me anyways, is that Amazon would just drop their affiliates in North Carolina. That sucks for those people, especially since there’s gotta be a few people in North Carolina making a living off being Amazon affiliates.

Related posts:

  1. Amazon Now Dropping Rhode Island Affiliates to Avoid Tax
  2. Hawaii Affiliates Now Dropped By Amazon
  3. Amazon.com not caving in to North Carolina
  4. Overstock.com Reversing Dropping of California & Hawaii Affiliates
  5. Online retailers & states battling over tax rules

1 Comment

  1. [...] another development on the Amazon.com/State of North Carolina affiliate taxes story, Amazon has started booting affiliates in North Carolina so that it won’t have to deal with [...]

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