Amazon Now Dropping Rhode Island Affiliates to Avoid Tax
North Carolina has been the most newsworthy of the recent states to start trying to tax Amazon.com affiliates. Recently Amazon decided not to cave in to North Carolina. Now Rhode Island is getting the ax.
This seems like this is a trend. What will happen in the future with the rest of the states out there?
Amazon.com Inc. ended its business relationships with marketing affiliates in Rhode Island so the online retailer could avoid collecting sales tax in the state.
Rhode Island’s state legislature recently passed a bill that would force companies to collect sales taxes if they have online-marketing affiliates—businesses that get a sales commission by featuring links to outside e-commerce sites on their own Web sites—in the state.
The Rhode Island termination follows a similar move by Amazon last Friday to end its relationships with affiliates in North Carolina as the state approached passing a similar law. Cash-strapped states across the country have looked at similar legislation to boost revenue. Such a law went into effect in New York last year.
How about this: These states that want to tax online marketers should just legalize pot and tax that instead. That would solve so many tax woes out there. That’s just my opinion.
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