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Getting dropped as affiliate because of PA nexus law

by webdesk
14 replies
Pennsylvania nexus law, which imposes sales tax upon internet sales, becomes enforceable after August 31st, 2012. I have received 3 notices from vendors already that because I reside in PA, my affilaite status will soon be revoked.

So, I would expect that Pennsylvania will soon join the other 6 states Amazon currently excludes... I have put a question to their affiliate support desk just to check...

One NH vendor has mistakenly said they interpret the PA law otherwise, since the sale actually takes place in NH, not PA; however, in re-reading the PA Dept of Revenue notice, it looks like if you are doing affiliate sales and reside (conduct business) in PA, then your vendor is on the hook to charge, collect, and remit sales tax. Of course, I can't give any legal advice regarding it, that's just my intrepretation, shared by all but one of my participating vendors!

So, PA affiliates...

are you prepared?
#affiliate #dropped #law #nexus #pennsylvania
  • Profile picture of the author GrumpyMonkey
    Damn, so does this mean all the people that left Jersey are coming back?

    Actually, this is pretty interesting and I will follow the thread.

    Sorry I dont have anything more valuable to contribute at the time.
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  • Profile picture of the author webdesk
    Amazon replied but didn't care to give any heads up yet:
    "I appreciate your concerns regarding tax legislation in your state. While I can't offer you specific information on our course of action, we'll be sure to notify you as soon as possible if such legislation affects the Associates Program in your state."

    So I guess it will mean a last minute scramble to take everything down for PA Amazon affiliates...!
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    Aden
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  • Profile picture of the author onSubie
    Are you close to another state that you could register a company in and do business from "there"?

    Mahlon
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  • Profile picture of the author Chris Silvey
    Originally Posted by webdesk View Post

    Pennsylvania nexus law, which imposes sales tax upon internet sales, becomes enforceable after August 31st, 2012. I have received 3 notices from vendors already that because I reside in PA, my affilaite status will soon be revoked.

    So, I would expect that Pennsylvania will soon join the other 6 states Amazon currently excludes... I have put a question to their affiliate support desk just to check...

    One NH vendor has mistakenly said they interpret the PA law otherwise, since the sale actually takes place in NH, not PA; however, in re-reading the PA Dept of Revenue notice, it looks like if you are doing affiliate sales and reside (conduct business) in PA, then your vendor is on the hook to charge, collect, and remit sales tax. Of course, I can't give any legal advice regarding it, that's just my intrepretation, shared by all but one of my participating vendors!

    So, PA affiliates...

    are you prepared?
    Best way around this is an out of state business license.
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  • Profile picture of the author StarFinds
    Originally Posted by webdesk View Post

    Pennsylvania nexus law, which imposes sales tax upon internet sales, becomes enforceable after August 31st, 2012. I have received 3 notices from vendors already that because I reside in PA, my affilaite status will soon be revoked.

    So, I would expect that Pennsylvania will soon join the other 6 states Amazon currently excludes... I have put a question to their affiliate support desk just to check...

    One NH vendor has mistakenly said they interpret the PA law otherwise, since the sale actually takes place in NH, not PA; however, in re-reading the PA Dept of Revenue notice, it looks like if you are doing affiliate sales and reside (conduct business) in PA, then your vendor is on the hook to charge, collect, and remit sales tax. Of course, I can't give any legal advice regarding it, that's just my intrepretation, shared by all but one of my participating vendors!

    So, PA affiliates...

    are you prepared?
    I am very interested to see what Amazon does about this also. In August 2012, I have already received notices from a number of vendors that they will soon be terminating affiliate relationships with all of their affiliates who reside in PA due to this new Pennsylvania Nexus law.
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  • Profile picture of the author Affportal
    Oh geeze. I had hoped nexus would pass over like the angel of death. Looks like its time to incorporate in Delaware.
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    • Profile picture of the author brentb
      Pretty soon all the states will be used up and you will need to register out of the country
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      • Profile picture of the author GlobalTrader
        Originally Posted by brentb View Post

        Pretty soon all the states will be used up and you will need to register out of the country
        And they wonder why so many businesses have gone offshore?
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  • Profile picture of the author UncleDearest
    I'm from PA and have been watching this closely for a year now. Amazon has at least 4 fulfillment centers, warehouses, in PA. That's a lot! If they refused to collect sales tax, they'd be forced to close or move those. I'm pretty sure they will be collecting sales tax and therefore won't axe the affiliate program in PA. We will know in a few weeks for sure. Unfortunately, the smaller companies like Costumes.com,fingerhut ect, have already done so and many more will follow.

    Amazon to charge sales tax in 8 more states - Jul. 18, 2012
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  • Profile picture of the author wolfmmiii
    I too am from PA and have been watching. Although I'm currently operating under the assumption that affiliates will be OK for the same reasons you have outlined, I have contingencies for moving to a few other major retailers for which I am an affiliate. I hope it doesn't come to that though.
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  • Profile picture of the author DesertSand
    I live in Pittsburgh. How do they know you live in PA? I mean, my wifes fam is from alabama..I could claim I live there?
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  • Profile picture of the author webdesk
    It was in the local paper today that Amazon has 6 fullfilment centers located in Pennsylvania and had long refused to collect the PA Nexus Sales Tax, but reversed it's decision and began collecting the tax on September 1st (2012). There was no specific mention about PA Amazon Affiliates, but hopefully that implies PA affiliates can continue their online activities. Hopefully too, other companies will follow, realizing that affiliates do contribute volume to sales!

    Ebay was also mentioned in the article, condending that they are not a retailer & therefore are not subject to the Nexus Tax...
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  • Profile picture of the author FIERCE IM
    waoohh that weird,

    The oly thinh you can do is to wait and see. Or just create another LLC in state like delaware or other who are more flexible. Not being a specialist in Law business it's the only short cut I can see now. Hope to help a little bit
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