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July 5, 2009
More States Forcing Amazon Tax Laws Killing Affiliate Marketing?
Online affiliate marketing used to be a lot easier, Google Adwords had their shot - limiting affiliate listings - and now a growing number of states in the US are implementing taxation policies that are driving out many major vendors that use affiliate marketing.
The policy started last year, most notably in New York, and as Kevin Lee points out has implications way beyond just the obvious affiliates.
On Friday, Rhode Island issued notices to over 100 online businesses that they require states sales tax to be collected. Three major businesses - Amazon, Overstock and BlueNile - told their Rhode Island based affiliates that they would no longer be able to promote their products, the Providence Journal reported.
As was announced earlier in the week, Overstock had axed North Carolina, Rhode Island, California and Hawaii affiliates.
The Terminator aka the Governor of California Arnold Schwarzenegger joined Hawaii Governor Linda Lingle to veto these taxes. One wonders how well online marketers can use the web to get other politicians to change their minds about these taxes.
Clickz reported that some companies are appealing the laws in New York. If they are successful in one maybe they will be willing to go after the others.
Posted by Frank Watson on July 5, 2009 10:01 PM
Comments
Web Guy 303 July 6, 2009 10:50 AM
If "Governor of California Arnold Schwarzenegger joined Hawaii Governor Linda Lingle to veto these taxes." why did Overstock axe California and Hawaii affiliates?
Was the law passed despite their veto?
Website Traffic July 7, 2009 8:11 AM
After living in North Carolina for the last 12 years, it looks like I will be forced to move somewhere like Tennessee that previously vetoed an similar affiliate tax. Of yes, they also do not have a state income tax.
Kind of makes it a no brainer.
Fred Waters July 7, 2009 10:32 AM
Yeah this is some crazy stuff, I've been following all this and it'll be interesting to see how it all plays out over the next year or two.