11 {{ upvoteCount | shortNum }}
11 {{ upvoteCount | shortNum }}

Please explain the affiliate 'taxes' in some states?

by Johnathan
9 replies
Hi,

I'm a bit confused as to what exactly is going on with respect to taxes in some states? Does anyone have a link (or a summary) to the proposed and/or enacted legislation at an authoritive source?

I've read that Amazon/cafepress, etc are terminating relationships due to "new" taxes being introduced in various states such as NYC, and NC.

Does this mean if someone is an affiliate for a firm say in California, that it would be a 'double' tax? Or what exactly does it mean?

Thanks
#affiliate #explain #states #taxes
  • Profile picture of the author bgmacaw
    Tax revenue is down because of the recession and states where the legislature is mostly made up of looters who buy votes by providing bread and circuses to the population are desperate to bring in more revenue. One of the main means at their disposal are sales taxes. Right now, based on court rulings, sales taxes aren't collected on out of state sales unless a business has a presence, aka nexus, in the state. The legist-looters are trying to say that having affiliates living in a state is the same as having a distribution warehouse or retail store in the state with the goal of forcing the collection of sales taxes. Amazon decided not to participate in the looting and closed their affiliates' accounts in those states.
    Signature
    Product Reviews | Earn Online Cash | Free HTML Templates
    Free WordPress Themes: Boring Memo | Dateless Mini-Site | Info Magazine | 100 Twenty-Ten Niche Headers
    Discount Templates, Graphics and Scripts: Templates for Website
    {{ DiscussionBoard.errors[935755].message }}
    • Profile picture of the author Catalyst eMarketing
      No. No double tax and it's not affiliates that are taxed. It's the consumer.

      Amazon does not have a physical presence in North Carolina (for example). So should not have to charge, collect and pay sales tax on goods they sell to the consumer. These new tax laws are using affiliates as a scape goat and saying if you have affiliates in the state, that's just like having sales reps in the state so you have to charge sales tax.

      It's a big hassle to track and pay taxes in a bunch of states you don't have an office in PLUS it raises the cost so cuts their business. SO instead of charging tax they are terminating affiliates.

      So the state does not even get that extra tax PLUS small businesses (affiliates) will be hurt in the process. LOSE. LOSE. LOSE.
      Signature

      Linda Buquet :: Google+ Local Specialist and Google Top Contributor
      ADVANCED Google+ Local Training :: Also offering White Label Local SEO
      Latest Google Local News, Tips & Tricks

      {{ DiscussionBoard.errors[935821].message }}
  • Profile picture of the author riverchase
    Amazon's action probably will set a trend for other biggies to follow
    to not allow state taxes.
    {{ DiscussionBoard.errors[936279].message }}
    • Profile picture of the author Dredger
      Good for California and Hawaii. I hope that our NC governor comes to her senses. I have seen nothing in the news or on the government website that says that that part of Bill 202 has been signed.
      Signature
      Valuable Finds
      The Espresso Machine
      The RV Camper
      {{ DiscussionBoard.errors[937016].message }}
      • Profile picture of the author Dredger
        Just got an email from LinkShare stating that the vote for the Internet tax in NC has been postponed for a few weeks. They are requesting that their affiliates compose a "letter to the governor" detailing how this tax will impact your business.They will hand deliver these letters to the key leaders and the governor. If you are a LinkShare affiliate, please do your part and send your letter to LinkShare.
        Signature
        Valuable Finds
        The Espresso Machine
        The RV Camper
        {{ DiscussionBoard.errors[937649].message }}
  • Profile picture of the author worlok
    Stop voting for the taxers.
    Signature

    --Tom
    Cryptopark
    Cryptopark
    Cryptopark
    Cryptopark

    {{ DiscussionBoard.errors[937831].message }}
  • Profile picture of the author ahlexis
    This is just one more example of why trying to boost revenues has the opposite effect. Even at the federal level people who don't like the new and/or higher taxes are leaving. And the sad thing is, the government officials plan their budgets around "estimated taxes" based on things as they are at the moment they decide to tax and get such taxes passed. Then when the businesses leave, they are left "short".

    Something similar is happening in Texas. In Texas it is slightly different, however, because it is not affiliates that are affected by new taxes but certain parts of the adult industry. And then when their efforts leave a shortfall they claim that the businesses are "ignoring the tax" instead of accepting the fact that the tax is not helping. While I am certainly not pro-adult-industry, I understand about being against higher taxes just as much as the next businessperson or group.

    And what is ironic is that the very people the governments often claim they are trying to help by raising more money get hurt when the businesses that can afford to, leave.

    Join in and fight, and do all you can to make it known that these tactics do not help in the long run but only do more damage to their budget shortfall situation. Many of the people in government do not understand that it is oftentimes easier to pack up and head for a more friendly business environment than it is to hang around and put up with their creating higher expenses for the business owners and that in the long run they cost everyone more.
    {{ DiscussionBoard.errors[937980].message }}
    • Profile picture of the author Joe118
      Cafepress and a bunch of other companies are also terminating affiliates in NC.
      {{ DiscussionBoard.errors[938025].message }}

Trending Topics