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URGENT: Arizona Affiliates Needed to fight "Amazon Tax" enactment (nexus)

by ArizonaJay
9 replies
Arizona is just about ready to pass the dreaded nexus rules that will force Amazon and other out of state merchants to charge sales tax. As you all know, this has occurred in other states with the result being that Amazon (and other merchants) dropped ALL their affiliates in those states.

Rebecca Madigan has already testified at the hearings in Arizona, and is now seeking out affiliates in Arizona, primarily so that she will have examples of sites that will explain to the politicians exactly WHAT an affiliate is.

This is important stuff, and I hope someone here will contact her. (and if you are not in Arizona, you should contact her and get involved anyway - your state will be next.)


Rebecca Madigan
Executive Director | Performance Marketing Association
o: 805.445.9700 (PST)
Rebecca at PerformanceMarketingAssociation.com
#affiliates #amazon tax #arizona #enactment #fight #needed #nexus #urgent
  • Profile picture of the author Nancy Fleck
    I know of a way for a workaround for this dreaded Affiliate "Amazon Tax" problem.

    There is a link called VigLink that you can join. You won't be working with Amazon anymore, they do and since they get more commission than you would otherwise, you could use them. Also, as I understand, you could use Squidoo lens. They work with Amazon for a higher commission and pay you your commissions. Or, you could just switch to Commisson Junction, or some other affiliate program. I have not tried the ways I have suggested, just thought it might be something to look into.

    Nancy Fleck
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  • Profile picture of the author Sojourn
    Ouch, to say the least. Having just spent a solid year building up a very reliable income on Amazon this was obviously bad news.

    If I understand the material correctly, AZ is including digital media sales in their definition, too, so while this stretches across nearly every channel of my online income it is Amazon that has me most concerned as we all know how they'll handle the situation should the bill pass.

    Thanks to ideas presented elsewhere in this forum I've come up with two backup plans to protect my business but it's still a mess of paperwork and changes that I didn't want to have to deal with.

    It's amazing (disgusting) how quickly this stuff moves, too. Just a few weeks ago I don't even think AZ was on the watch list for this stuff and now it's already moving its way through the House.
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    • Profile picture of the author newimguy
      Originally Posted by Sojourn View Post

      Ouch, to say the least. Having just spent a solid year building up a very reliable income on Amazon this was obviously bad news.

      If I understand the material correctly, AZ is including digital media sales in their definition, too, so while this stretches across nearly every channel of my online income it is Amazon that has me most concerned as we all know how they'll handle the situation should the bill pass.

      Thanks to ideas presented elsewhere in this forum I've come up with two backup plans to protect my business but it's still a mess of paperwork and changes that I didn't want to have to deal with.

      It's amazing (disgusting) how quickly this stuff moves, too. Just a few weeks ago I don't even think AZ was on the watch list for this stuff and now it's already moving its way through the House.
      Sojourn what do you plan to do?
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      • Profile picture of the author Sojourn
        Originally Posted by newimguy View Post

        Sojourn what do you plan to do?
        After a couple hours of pure panic and then working through a host of options including selling my sites or using a family member's address/account, I settled on setting up an LLC in Delaware. I'm not ready to sell and I don't want/won't burden a friend or family member with tax issues. There are probably other legal ramifications with simply using an address that isn't mine. I still have a few questions I need to address but so far the LLC approach looks like the best plan for me.

        Delaware is attractive for several reasons but anyone considering the same needs to do their own homework and talk to their own legal counsel. I assume going this route will open me up to periodic audits and will require more paperwork and tracking than I'd like but it's all a part of being in business and I do intend to maintain this as a business.

        It also looks like I can get the LLC done relatively quickly so I'm not going to do it right away. I've registered at a site that will keeps me up to date on the calendar of this bill. I'll choose a point of no return at which time I'll pull the trigger and start the paperwork for the LLC. Gives me time to continue educating myself on the consequences of going this route.

        Certainly feeling immense sympathy for those in the states that have gone before us. It's a real blow to hear this issue is headed your way. Your number one weapon is information. You might not be in this situation yet but it wouldn't hurt to read up on the issue, get informed, and come up with your back up plan now. When it heads your way you'll be that much more prepared and a lot less stressed!
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  • Profile picture of the author IMShoppingMall
    Originally Posted by ArizonaJay View Post

    (and if you are not in Arizona, you should contact her and get involved anyway - your state will be next.)
    This is merely the first tep in "normalizing" revenues for states. They see the massive amounts of dollars being spent by their citizens online and believe that part of that transaction should go to their pockets.

    I'm still confused as to legality of nexus... does Amazon have a physical presence in AZ? Didn't stop IL; don't think it's gonna stop AZ. Sad but true.

    Good luck.
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    • Profile picture of the author netlexis
      The affiliates are what the states are using to define nexus, so AZ considers Amazon is doing business in the state because it has a relationship with the affiliate.
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  • Profile picture of the author Rob Thayer
    I have a business that sells a lot on Amazon. They recently built two or three HUGE new fulfillment warehouses in Phoenix (one is about half a mile long). It would be a shame to see them pull out because of tax issues, because it's nice having a distribution center nearby. I would also get whacked as an Amazon affiliate. So far, not much liking this new governor of ours.
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  • Profile picture of the author tritrain
    I was really surprised that Arizona would do it before so many others. I thought they would hold out longer. Maybe it was the housing crisis that tipped it.

    *I fear that Amazon will just stop affiliate marketing altogether, instead of fighting each state.
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  • Profile picture of the author Biggy Fat
    Won't be long before the great state of Alabama gets it. But then again, it's nothing I'm worried about because I am out of IM and no longer having to please Google to please myself.

    I do feel sorry for the Arizona affiliates, though. Hope all goes well with yall.
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