More States Propose Internet Sales Taxes



Update 7:40 p.m.: The Denver Post has posted a comment from Colorado Gov. Bill Ritter, a Democrat who signed the bill into law last week: "Amazon has taken a disappointing - and completely unjustified - step of ending its relationship with associates. While Amazon is blaming a new state law for its action, the fact is that Amazon is simply trying to avoid compliance with Colorado law and is unfairly punishing Colorado businesses in the process."

That doesn't even make fucking sense.
 
I know I don't say much around here but this is seriously one of the dumbest laws I have ever seen.

This is all we need, more taxes on already struggling small businesses. I was hardly surprised to see California on that list. Yes, let's do everything in our power to get the remaining small businesses still based in california to pack up and move out. It's like a never-ending circle jerk of taxation for these poor guys.

Let's not forget that a very high percentage of small business owners in California have also owned homes and got burned by the sub-prime housing bust whether they are still in their homes with negative equity or even got foreclosed on. What a surprise that the state is now going to try and recover a miniscule percentage of that lost property tax revenue from the some of the same people who already lost their asses on said properties losing value.

Genius.
 
This law is retarded, but I do agree that Amazon made a childish move canceling associate accounts for everyone living in CO. None of my amazon traffic was even targeted at Colorado residents.
 
This law is retarded, but I do agree that Amazon made a childish move canceling associate accounts for everyone living in CO. None of my amazon traffic was even targeted at Colorado residents.

It wasn't the first time they've done it - and it makes sense as a business move - at least up until the point that many states pass similar laws.
 
IMO Amazon did the right thing , states that increase taxation over cutting of wasteful government spending should realize that they're only hurting themselves.
 
This law is retarded, but I do agree that Amazon made a childish move canceling associate accounts for everyone living in CO. None of my amazon traffic was even targeted at Colorado residents.

The point the state made was that an affiliate amounts to an "presence" by Amazon and thus needs to start collecting sales tax, your traffic doesn't have jack shit to do with it. Collecting sales tax for CO would place a bureaucratic and profit dampening burden on Amazon, which would surely increase exponentially once the other states saw Amazon capitulate for CO and they craft me-too legislation.

Simply put, it's a smarter business decision to cut you guys out.
 
Soo...who wants to move to alaska...no income or sales tax...


... or high speed internet, people, and anything to do.
 
What I find hilarious is that as much bitching as people are gonna do on this forum and elsewhere, affiliates (in general) are lazy selfish pricks and won't lift a finger to do anything about it.

Example: Do you live in California? Are you a member of the ad tax google group that's helping fight the bill currently being debated in cali? PMA California Advertising Tax | Google Groups There are only like 35 members right now, pretty pathetic. I know at least 35 people personally that are in the biz living in cali.

Maryland's up next. Need more people http://groups.google.com/group/pma-md

Also read the bottom here to learn how to get involved, although you probably won't:

The Affiliate Ad Taxes: Why You Should Care | NickyCakes.com
 
Gees, what's happening to you guys down south? I remember a time when professional hockeys didn't even want to play in Canada because of the tax bite.

Vancouver is the new tax haven, man that hilarious.
 
Soo...who wants to move to alaska...no income or sales tax...


... or high speed internet, people, and anything to do.
.... but we can smoke weed? that's really the make-or-break of it.
as far as i'm concerned, <1oz is completely decriminalized in alaska, and a 1000w grow light would double as a space heater, so uhh, PM me if you're serious :-p
 
This really sucks. Eventually I expect if Amazon can't win their appeals on this it'll become so widespread that all internet purchases will become taxed. Then they'll reinstate all the affiliates but it will greatly slow down the progress of ecommerce as currently you usually have to pay shipping which acts as the "tax" in the mind of consumers now but if they had to pay both shipping and tax they would greatly think twice about buying things online.
 
This really sucks. Eventually I expect if Amazon can't win their appeals on this it'll become so widespread that all internet purchases will become taxed. Then they'll reinstate all the affiliates but it will greatly slow down the progress of ecommerce as currently you usually have to pay shipping which acts as the "tax" in the mind of consumers now but if they had to pay both shipping and tax they would greatly think twice about buying things online.

People will still buy online. The real problem is, if Amazon is required to collect sales taxes everywhere, there are over 6000 tax jurisdictions in the US who will want to have sales tax collected on their behalf. That requires people to keep track of ALL the laws in ALL the jurisdictions. This is doable...for amazon, because they'd have the resources, but for anyone else an impossibility. Obstructions to interstate commerce should be avoided at all costs, which is why the commerce clause exists in the constitution.