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Texas Amazon Affiliates - Be Nervous

Discussion in 'Affiliate Programs' started by BorisTipsIt, Oct 26, 2010.

  1. BorisTipsIt

    BorisTipsIt Regular Member

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    Texas just sent a $269 million sales tax bill to Amazon. When other states have done this in the past, Amazon has terminated all the affiliates in that state. Can't post a link, but you can find it online.

    In general, Amazon argues it doesn't have to collect or pay the tax because it isn't physically in the state. No clue what it will do in this case, but Texas affiliates should be on guard. One thing that may save you is Amazon bought Woot, which is in Texas. This would appear to kill their argument.
     
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  2. Chronos

    Chronos Junior Member

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    In all, it's about time Amazon pays the same taxes local, physical business' pay.

    Not saying terminating Texas affiliates is a good thing, at all.

    Infact I'm going a little off topic, but Joe Schmoe who runs Joe Schmoe Store down the road has to pay sales tax on anything it sells, and the same person who buys the same thing online should have to, too.

    I wouldn't enforce this with any internet commerce company that grosses less than 1 million/year, as it wouldn't be worth it.


    Amazon has also done this with states and subsequently affiliates where they have tried to put affiliate tax laws in place.
     
  3. makingfastcash22

    makingfastcash22 Senior Member

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    In that case wouldn't all affiliate companies that sold a physical product have to pay state taxes?

    Now we see why companies move their businesses to other countries.

    I guess the state income tax on the affiliate is not enough.
     
  4. beatuplunchbox

    beatuplunchbox Junior Member

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    Amazon is suing NC (North Carolina) over the same thing. They dropped all of their NC affiliates last year, and now many CJ affiliate programs are pulling out as well.

    Texans, expect to be left high and dry like we were in NC...
     
  5. BorisTipsIt

    BorisTipsIt Regular Member

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    Colorado, New York...think California is about to try one. Problem is you end up filing a state tax return for all 50 states. Freaking madness.
     
  6. Fwiffo

    Fwiffo Power Member

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    on a slightly related note for my american friends:

    alaska, deleware, montana, new hampshire, and oregon have no sales tax

    may be time to incorporate somewhere else :)
     
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  7. niche1

    niche1 Jr. VIP Jr. VIP Premium Member

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    Stupid Internet Tax.......

    Not bad enough that our hard earned money is being squandered over stupid crap(from our day jobs), but now they want to take MORE money from our Internet earnings and blow it.......

    Wow...not cool!
     
  8. benpari

    benpari Registered Member

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    Fight the bill tooth and nail.

    I'm from Colorado and I wasn't paying any attention to the issue until it was too late.

    On the other hand, its complete bullshit that Amazon is willing to throw us under the bus.
     
  9. makingfastcash22

    makingfastcash22 Senior Member

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    COOL I am from one of those states! NICE.