Am informed today, like probably all other NC Amazon affiliates, that my account has been dropped. Thank you, NC Legislators for a really stupid piece of legislation with implications that you didn’t understand when writing this ridiculous law and probably still don’t understand today. Thanks also for hurting small businesses and entrepreneurs in North Carolina (aka “voters”).
Amazon writes,
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.
(06302009: fixed misspelled word)
I asked Pricey, and she said she was looking into it. Not sure where it stands now though. I’m not exactly sure how you can even think about collecting sales tax from an Internet vendor that has “independent contracts” with the affiliates. Those affiliates are not representation of that business just as contract companies work.
I think it’s sad that only AFTER the legislation moves forward and everyone complains (even though they did prior as well) that legislators take a look at the legislation. Our legislators do not understand how the Internet works, sad to say, and they don’t support small business unless you start making them look foolish nationally. Or they do it to themselves.
I just read this comment from Governor Perdue in the News 14 article:
Gov. Bev Perdue said she is not convinced by Amazon’s actions that the tax is a bad idea.
“I will be very surprised if any of the major click through retailers refuse to sell to our state, which is the seventh largest in America,” she said.
The way I understand the issue, it’s not about sales tax on purchases by NC residents, but about sales tax on referrals from associates who are NC residents. Many of these purchases are from out of state and there is no reason for NC to collect a sales tax – that is the point Amazon i trying to make.
I’m not an associate, but I make my Amazon purchases through an associate to help support her charity.
Leather, yours is one good example. It’s almost like using a nonprofit or school’s ID# in the grocery or book store.
Small businesses actually count on Amazon associate fees for income and for clients’ income across their own Web sites and blogs. The issue of sales tax on online sellers without a physical presence in your state was settled, or so I thought. Laws like NC’s simply show a lack of understanding of how electronic sales work and worse, how small business works (in ways that legislators just don’t “get”).