http://www.news-record.com/content/2009/06/17/article/amazon_warns_nc_affiliates_about_tax_issue Amazon.com has sent a warning to affiliate sellers who live in North Carolina that their relationship with the giant online seller of books, music and other retail items may be terminated due to a pending change in the tax law. “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,†Amazon wrote by e-mail to affiliate customers this morning.
Aparrently Amazon will not now take on new Associates living in N.Carolina. The legislation isn`t quite yet up and running, but from what I`ve read Amazon are serious about removing all Associates residing in N.C. from the program if the new law goes ahead.
Further on this- http://www.techjournalsouth.com/news/article.html?item_id=7644 Amazon threatens to cut off NC associates if state tax bill passes June 19, 2009 RALEIGH, NC - Amazon.com says that if a new North Carolina tax bill on "click-through" transactions becomes law, it will cut off its associates in the state. Amazon associates receive up to 15 percent commissions on sales made via click-throughs on their sites. In a June 17 letter to its NC associates, Amazon wrote: "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." Like many states, North Carolina is struggling with a declining tax base and budget shortfalls due to the recession. It is considering a number of new taxes to help meet the shortfall. In its letter, Amazon said that because the law is drafted to go into effect as soon as it is enacted, which could be in as little as two weeks, the company would terminate its associates in the state before or on the same day as it goes into effect. Amazon wrote: "The unfortunate consequences of this legislation on North Carolina residents like you were explained in detail to key senators and representatives in Raleigh, including the leadership of the Senate, House, and both chambers’ finance committees. "Other states, including Maryland, Minnesota, and Tennessee, considered nearly identical schemes, but rejected these proposals largely because of the adverse impact on their states’ residents." North Carolina General Assembly web site: www.ncleg.net/
i got the email from amazon,they are ending all relationships with nc affiliates..them as well as several other companies i am an affiliate of..NC sucks!!
I`ve seen some comments from some affiliates in N.Carolina who do very well with their affiliate earnings that they could even consider relocating to a nearby state if the law goes ahead. That`s drastic, but for some it could actually mean a loss of their livelihood if they get cut off as affiliates.
Place the blame where it belongs, and that is on the voters. They are the ones that elected the politicians that make the laws. If you do not like the laws, then vote for someone besides the republican and democratic parties - they are the ones that are pushing this type of stuff. Amazon is doing what is has to in order to protect itself.
California next? A letter from Amazon to California politicians- ------------------------------------------------------------------------------------------------------- The Honorable Arnold Schwarzenegger Governor, State of California State Capitol Building Sacramento, CA 95814 The Honorable Darrell Steinberg The Honorable Dennis Hollingsworth The Honorable Karen Bass The Honorable Sam Blakeslee Re: Opposition to the New Tax Collection Scheme of AB 178 (Skinner) Dear Governor Schwarzenegger, Senate President pro Tempore Steinberg, Speaker Bass, Minority Leader Hollingsworth, and Minority Leader Blakeslee: Amazon.com respectfully opposes the new tax collection scheme of AB 178 (Skinner) and similar nexus legislation because it is unconstitutional and would not be an effective source of revenue. The U.S. Supreme Court`s Quill decision prohibits a state from requiring sales tax collection by sellers that lack physical presence in the state. The approach of AB 178 is unconstitutional because it ultimately would require sellers with no physical presence in California to collect sales tax merely on the basis of contracts with California advertisers. If this new tax collection scheme were enacted, Amazon would have little choice but to end its advertising relationships with California-based participants in the Amazon Associates Program. (Participants in the Associates Program place Amazon advertisements on their websites, and then are compensated by Amazon for purchases made by visitors whom they refer to Amazon`s website.) Anticipating imminent enactment of similar legislation in North Carolina, Amazon already has taken steps to close the accounts of North Carolina-based Amazon Associates, and we will no longer pay referral fees after this closure nor will we accept new applications for the Associates program from North Carolina residents. Thus, this provision would provide no new tax revenue collected by Amazon or others who sever their relationships with California-based advertisers, and any revenue estimates should take this into account. And, unfortunately, the approach of AB 178 would deny California-based organizations the advertising fees they currently receive from out-of-state retailers. California instead could heed the direction of the Supreme Court, which said that out-of-state sellers may be required to collect only if states simplify and harmonize their sales tax laws. The well-established multistate Streamlined Sales Tax Project (SSTP) is the legally-permissible path for states to follow. The approach of AB 178 would undermine the purposes and viability of the streamlining effort and, thus, is opposed by the National Conference of State Legislatures (NCSL), the Council on State Taxation (COST), and the Business Advisory Council to the SSTP, all of which support SSTP instead. In sum, Amazon.com respectfully asks that you oppose the new tax collection scheme of AB 178 and similar nexus legislation. Please let me know if you have any questions. I can be reached at {contact info} Sincerely yours, Paul Misener Vice President for Global Public Policy cc The Honorable Nancy Skinner; Members of the California State Senate; Members of the California State Assembly
Associates` accounts in N.Carolina have today been closed. A letter has been sent out to all Associates in that state informing them of this action.
I'm in NC. Here's the letter I got this morning: We are writing from the Amazon Associates Program to notify you that your Associates account has been closed as of June 26, 2009. This is a direct result of the unconstitutional tax collection scheme expected to be passed any day now by the North Carolina state legislature (the General Assembly) and signed by the governor. As a result, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com after June 26. We were forced to take this unfortunate action in anticipation of actual enactment because of uncertainties surrounding the legislation's effective date. Please be assured that all qualifying referral fees earned prior to June 26, 2009 will be processed and paid in full in accordance with our regular referral fee schedule. Based on your account closure date of June 26, 2009, any final payments will be paid by September 1, 2009. In the event that North Carolina repeals this tax collection scheme, we would certainly be happy to re-open our Associates program to North Carolina residents. The North Carolina General Assembly's website is http://www.ncleg.net/, and additional information may be obtained from the Performance Marketing Alliance at http://www.performancemarketingalliance.com/. We have enjoyed working with you and other North Carolina-based participants in the Amazon Associates Program, and wish you all the best in your future. Best Regards, The Amazon Associates Team
Hmm....looking at what the law is trying to do I don't see this as a problem. Those selling goods from the state should pay appropriate sales tax.
I just received this from Amazon.com: "We are writing from the Amazon Associates Program to notify you that your Associates account has been closed as of June 26, 2009. This is a direct result of the unconstitutional tax collection scheme expected to be passed any day now by the North Carolina state legislature (the General Assembly) and signed by the governor. As a result, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com after June 26. We were forced to take this unfortunate action in anticipation of actual enactment because of uncertainties surrounding the legislations effective date. Please be assured that all qualifying referral fees earned prior to June 26, 2009 will be processed and paid in full in accordance with our regular referral fee schedule. Based on your account closure date of June 26, 2009, any final payments will be paid by September 1, 2009. In the event that North Carolina repeals this tax collection scheme, we would certainly be happy to re-open our Associates program to North Carolina residents. The North Carolina General Assemblys website is http://www.ncleg.net/ [ http://www.ncleg.net/ ], and additional information may be obtained from the Performance Marketing Alliance at http://www.performancemarketingalliance.com/ [ http://www.performancemarketingalliance.com/ ]. We have enjoyed working with you and other North Carolina-based participants in the Amazon Associates Program, and wish you all the best in your future. Best Regards, The Amazon Associates Team"
I forgot to mention this important issue. I think it's a lot to blame Amazon.com on this NC issue. Here's why. Upon receiving the early notice I went to my affiliate accounts to update my address from NC to the state where I reside right now. Amazon.com affiliate website will not allow me to update. Here's the description of the problem: I am unable to update my address (from NC to "another state" address) and Amazon.com phone support (in USA) told me basically they can not help me, yes, they did, and they repeatedly told me they are unable to help me and that my accounts will be closed despite all the business we've done in 9 years including $$$ of purchases of books and CDs from Amazon.con), that was their support female named "Misty" who told me Amazon.com will not help me change my address (simple task you would think!) and that they can not update my address on their system!!! The other support person didn't even know what an Amazon affiliate is.... That happened on June 17, 2009. Here's the link of the problem, page: https://affiliate-program.amazon.com/gp/associates/network/your-account/payee-info.html And it won't allow me to switch to "YES" under " Contact same as Payee?" When I click on "SAVE CHANGES" button, after I enter everything correctly, it keeps on giving the error: -------------------------------------------------------------- An Error Occurred Please complete this information and click Save Changes to continue. -------------------------------------------------------------- Also, to mention, when I called Amazon support the very first time, I got an outsourced location somewhere in India and they gave me this email to contact Amazon Affilate Program: assoc-1@amazon.com. Well, the problem is the outsourced people are simply liars since this email is invalid... Since the Amazon.com's outsourced employees are liars so Amazon is substandard to me now and I suspend all my purchases at Amazon.com.
Makes perfect sense that they have made it impossible to change your address. How many folks would simply use a friend or relative's address to try to escape this nonsense? To those folks who keep telling the NC people to pay their sales tax - you do realize affiliate payments are classified as income just like any sort of commissioned sale? The folks who would pay a sales tax to the state would be Amazon. I and all the other NC affiliates pay tax on our affiliate commissions in the form of income tax. The stupidity of this is that it was predictable that Amazon and the other similar programs would drop all NC affiliates. Now NC will not get the sales tax or the income tax.
Why not create a new account with a different address? Amazon can't just let you change the address because of this nonsense legal issue. But Amazon didn't told you that you can't use a different address. Internet belong to the world, use an India address if you like. ;-)
Well, NC people, time to incorporate in another state like NV. We take everyone, Some of the best laws for businesses in the nation.