First N.C, then R.I... Now California?

[Ryan700]

Originally Posted by Mike Hill

Looks like Canada might become a hot bed for affiliate programs and affiliate marketers... YEAH!
Mike Hill

Until Canada follows the same dumb-ass lead the U.S. does. They always do. Just look at where the vitamin sector is going.

[GarrieWilson]

Originally Posted by Matthew Maiden

They do. It happens all of the time.

I had a neighbor whose daughter got Liver Cancer and their "coverage" didn't cover that kind of Cancer for the amount needed for her medical costs.

The parents spent most of their time trying to raise money to keep their daughter alive.

That's no what I'm talking about.

I'm talking about a real non-profit. Like MDA, American Cancer Society, etc.

An organization that spends it's time doing fund raising on a national scale. They could then buy hospitals, medical supply stores, etc. to provide services to people in need for free and charge those who can pay.

Their are other answers besides socialized health care. But American are to damn lazy and want everything handed to them.

Meanwhile, up the highway a man who raped and murdered a little girl was getting his teeth cleaned by the taxpayers at the Federal prison.

Yup and that's why I think prisons should have factories built-in them to offset the costs. And when they are released, they have to pay back the difference.

[ptone]

Originally Posted by Matthew Maiden

Meanwhile, up the highway a man who raped and murdered a little girl was getting his teeth cleaned by the taxpayers at the Federal prison.

This example you gave is a government-run program. I don't think the answer is MORE government.

I know you didn't say that more government is the answer, but I did want to point this out.

[jacktackett]

Originally Posted by TLTheLiberator

What do they want?

Revenue? ( can't blame them there )

Kill affiliate marketing?

What did NC want??

TL

TL - I live in NC and what the state wanted was to collect sales tax on what Amazon and other online retailers where selling to NC citizens. Right now the US Supreme Court has ruled the only way a state can enforce this is if the entity(business) has a nexus - or physical - presence in the state.

Since Amazon doesn't have any such thing (building, store, office, etc) the state had to figure out how to make it looked like Amazon did have a presence. That way Amazon would be required to collect sales tax and forward it to the state.

The legislature did this by saying if you have an affiliate - someone who gets paid to sell your product - in the state, then that magically constitutes having a physical presence in the state - and thus allows the state to force Amazon to collect and forward sales tax.

Which is a royal nightmare to any business in NC since the tax rate is partially set by the state but also by each county - and even some cities.

There are 100 counties in NC - so a business would have to track which county/city an order was sent to and then charge, collect, and remit the tax on that sale.

--Jack

[worlok]

Originally Posted by Matthew Maiden

I'm not trying to be a wise ass, but what is unconstitutional about proposing and levying a tax?

A tax that unfairly puts one type of person out of business but others are allowed to fly under the radar? Hmmmm. For example, if a different sort of independent contractor is not forced out of business in the same way. Independent contractors, i.e. affiliates who work by commission and who are not considered employees an who do not report to "work" at an Amazon facility - i.e. physical plant. Now they are claiming that my computer terminal constitutes reporting to Amazon as someone would report to their job? That's insane, self serving for them, and total bupkus.

Look, the Internet is a game changer, and the old dinosaur mindset that most of government still operates in needs to change. Do you realize that for too many local and state agencies they still insist on communication via postal mail?

[worlok]

Originally Posted by jacktackett

TL - I live in NC and what the state wanted was to collect sales tax on what Amazon and other online retailers where selling to NC citizens. Right now the US Supreme Court has ruled the only way a state can enforce this is if the entity(business) has a nexus - or physical - presence in the state.

Since Amazon doesn't have any such thing (building, store, office, etc) the state had to figure out how to make it looked like Amazon did have a presence. That way Amazon would be required to collect sales tax and forward it to the state.

The legislature did this by saying if you have an affiliate - someone who gets paid to sell your product - in the state, then that magically constitutes having a physical presence in the state - and thus allows the state to force Amazon to collect and forward sales tax.

Which is a royal nightmare to any business in NC since the tax rate is partially set by the state but also by each county - and even some cities.

There are 100 counties in NC - so a business would have to track which county/city an order was sent to and then charge, collect, and remit the tax on that sale.

--Jack

So now the NC affiliates can't sell Amazon goods. Nice. I can't believe a southern state passed such a stupid law. I can see it happening in New England or someplace (God forbid) like the Peoples Republic of New Jersey where I live, but NC? Sad day.

I wrote to Jim Demint about it. He's a national guy and I hope that he learns of this and when the time is ripe starts something about it. He looks nationally for fund raising and I donated a bit since he's a pro business kind of Federal legislator.

[BlackWaterBlog]

I just love how every single day I see or read new ways of our beloved country driving itself into the ground with stupid and pointless legislations like this.

[CmdrStidd]

Originally Posted by ptone

Does anyone know if Avon reps have to collect sales tax from their customers? This seems to be a good parallel to how affiliate programs are set-up.

While it might seem like a good parallel it is not a good one in reality and here is why.

Avon, Tupperware and a host of other companies that function in this similar pattern do have to pay sales tax in the state that it is sold, but here is what separates them from affiliates.

They have warehouses that stock the goods in all these states!! Do affiliates stock the goods they market? NO!!! That is what separates the affiliate marketer from these other business models. As a sales person for a drop-shipping company, I only need charge taxes on whatever states they have warehouses in and they tell me where that is and what to charge.

I do agree that this is bull but unless we can get a major march on Washington I am afraid nothing can be done.

[Matt Jutras]

It's a sad attempt of a money grab from our useless government.

These people aren't fit to clean our toilet bowls, but they want to decide how much we can earn...and now eliminate ways that we can do so.

It's only going to get worse from here on out, considering who won the last election.

[worlok]

Originally Posted by CmdrStidd

I do agree that this is bull but unless we can get a major march on Washington I am afraid nothing can be done.

The answer is to donate to the proper organization who can LOBBY on our behalf. Everyone else does it.

[Norma Holt]

There is another side to affiliate marketing that has not been noticed above. It is cutting out retail shops and, therefore, the landlords who make up most of the big end of town. People buying online have no need for them and goods are also a lot cheaper, according to my experience. As shops close so do jobs and a lot of revue is lost to the traditional markets.

Just a thought. I know there is something going on in New York as well but it is beyond my expertise to follow it through.

Norma

[charlesburke]

I've heard it said that there's little to distinguish a highwayman (who demands your money) from a politician (who also demands your money) except an office in the capital.

Cheers, Charles

[pcpupil]

What if you didnt sell any products in NC.Make sure all your sales are outside.Just put a note on your website.[I dont sell to NC residents].

Someone was doing this on ebay i think because they didnt want to have to get a biz license and pay tax in that state even though they lived there.
How would your state even know you where getting a check.

Unless Amazon reported it.
In that case,Amazon needs not to report it.Just treat us as an independent contractor.
Then say in your note why.Maybe the word will get out to your politicians.
Ive been my own contractor in 3 different states.

One of them doing siding for a major,major company.With all 3 of them i had to sighn an independent contractors release form.This basiclly said that this [company] was in no way responsible for any taxes on any moneys i incure,including state,federal,SS,[insurance,self employment],dutys,ect..

This was a full page written by lawyers no doubt because i didnt even read the whole thing it was so long,garbled,and just a bunch of words only a lawyer could read.
How does amway,avon,nuways,that hair [nexus],ect..get away with it.
Or like mentioned before,Make yourself a home office in another state.Heck,make me yours,have all moneys,contacts,bills,whatever sent to me,ill take car of all expensis, a little commision,use my addy,then send you the rest.

Not hard.
How about we all set up a little embassy of our own from the country our ancestors are from.
This way we can Yell Diplomatic Immunity! It works for everybody else.

[GarrieWilson]

Originally Posted by Norma Holt

There is another side to affiliate marketing that has not been noticed above. It is cutting out retail shops and, therefore, the landlords who make up most of the big end of town. People buying online have no need for them and goods are also a lot cheaper, according to my experience. As shops close so do jobs and a lot of revue is lost to the traditional markets.

Thats not another side of affiliate marketing. That's brick-n-mortars not adapting by adding value added service to compete with online prices. You know things like free delivery, setup, free extended warranties, support, etc.

[ptone]

Originally Posted by CmdrStidd

They have warehouses that stock the goods in all these states!! Do affiliates stock the goods they market? NO!!! That is what separates the affiliate marketer from these other business models. As a sales person for a drop-shipping company, I only need charge taxes on whatever states they have warehouses in and they tell me where that is and what to charge.

I didn't know those companies had warehouses in each state. You're right, that would give them the nexus that would force them to collect sales taxes. Thanks for the insight.

[ricarde88]

Woah.... Why do they do these anyways? Is it about politics? What will happen to the affiliate marketers in Cali then?

[worlok]

Originally Posted by ricarde88

Woah.... Why do they do these anyways? Is it about politics? What will happen to the affiliate marketers in Cali then?

If their governor vetoes the legislation, nothing. If he signs it, then Amazon kills their Cali affiliate program and Cali affiliates cannot promote Amazon products via the affiliate program. they have to promote other things. Stinks because the Amazon program is pretty good.

[Catalyst eMarketing]

Governor Schwarzenegger just committed - NO advertising tax (affiliate sales tax) in CA. Plus Hawaii's Governor vetoed it in that state as well.

Here's the news with a great quote from Schwarzenegger in support of affiliates.
Great News re CA and Hawaii Advertising Tax (Amazon Tax)

I'm sorry that NC and RI affiliates have to deal with this. I hope other states that are considering similar legislation will follow California's lead.

[mr2monster]

Originally Posted by CmdrStidd

While it might seem like a good parallel it is not a good one in reality and here is why.

Avon, Tupperware and a host of other companies that function in this similar pattern do have to pay sales tax in the state that it is sold, but here is what separates them from affiliates.

They have warehouses that stock the goods in all these states!! Do affiliates stock the goods they market? NO!!! That is what separates the affiliate marketer from these other business models. As a sales person for a drop-shipping company, I only need charge taxes on whatever states they have warehouses in and they tell me where that is and what to charge.

I do agree that this is bull but unless we can get a major march on Washington I am afraid nothing can be done.

Aren't Avon and Tupperware (et al) RESELLERS?

That would separate them from affiliates right away because when you become a reseller you do in deed have a physical location in the state.

[mr2monster]

Originally Posted by 5starAffiliatePrograms

Governor Schwarzenegger just committed - NO advertising tax (affiliate sales tax) in CA. Plus Hawaii's Governor vetoed it in that state as well.

Here's the news with a great quote from Schwarzenegger in support of affiliates.
Great News re CA and Hawaii Advertising Tax (Amazon Tax)

I'm sorry that NC and RI affiliates have to deal with this. I hope other states that are considering similar legislation will follow California's lead.

Awesome news!

[Gene O]

More stupid laws. What a shocker.