Another State Cut Off from Amazon's Affiliate Program
Just came across this article. Never knew that certain US states were cut off from Amazon's affiliate program. Just added to the list of states is Louisiana. Other states are:
- Arkansas
- Maine
- Missouri
- Rhode Island
- Vermont.
Amazon's decision was in response to these states deciding to tax businesses with no physical presence inside their borders. Louisiana's Act 22 would "require out-of-state retailers (like Amazon) with in-state contract affiliates – individuals or businesses that refer potential customers to the seller – typically by linking to their website – to remit taxes on sales made to Louisianans." (The Pelican Post)
This type of taxation is questionable since the Constitution "prohibits states from taxing businesses without a sufficient nexus – connection – between them." (The Pelican Post). Such taxes attempt to skirt the standard that a business has to have a physical presence in a state by creating an arbitrary “economic presence” standard.
Amazon doesn't like this. They are in favor of some kind of compromise to establish a common practice across the country (Marketplace Fairness Act), but are not in favor of states individually deciding how to deal with online retailers. This is one of the reasons for their concern from that article from The Pelican Post:
So, to eliminate potential problems and to likely make a statement, Amazon has decided to not work with these states, thus taking away the affiliate program from anyone who lives in these states. Here's the wording in their "Associates Program Operating Agreement":
Let's just hope some kind of resolution can be reached so selling is fair to all no matter if it's online or at a brick and mortal establishment. Otherwise, we might be seeing more states added to this list. (Hope not.)
Just wanted to pass that on to everyone.
Hope you're all having a good week!
Recent Comments
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A while back I had heard of retailers complaining about online retailers not charging state taxes. Not sure how Wisconsin handles it, but I know I pay state taxes here on things I order online, just don't know exactly how they are handling it now.
Thanks for weighing in, John.
Like you, I pay for out-of-state online purchases (keep track of all those). That's fair.
And, like you said, retailers want online retailers to do the same. Seems fair, as well. So these Amazon taxes are one attempt to do that. But, it's not the best way to go about it (esp. for affiliates like us). Seems like that Marketplace Fairness Act is a better option. Let's keep our fingers crossed so they can make it work. =)
I am in Rhode Island and Amazon has been a no no here for quite some time. Been hearing from other folks that their affiliate program is nothing to jump for joy over anyway. More example of government over reach as usual any way
Gary
Thanks for sharing, Gary. Really feel for all of you living in those states. Couldn't believe this when I read about it yesterday. Thank goodness there are many, many other affiliate programs out there. Maybe even better. Take good care!
Timely advice Susan. I commented on this in another post, I think it was about Louisiana on this subject and predicted that other states would be involved. This is a result of the slowdown in the economy and should be no surprise. The bigger a target like Amazon, the more they will come after it.
Seems like a good reason for an overreaching policy, like the Marketplace Fairness Act, to keep both states and retailers happy. Hopefully that won't take too long (otherwise, like you said, more states will become involved).
Thanks for chiming in, Michael. Have a good Friday!
Sadly this is what happens when government tries to over reach in my opinion Susan. They just never learn and I feel for all the potential affiliates who suffer because of this...
Yes, that's true. If a resolution is not reached, other states' government may follow these 6's lead and adopt their own Amazon laws. Then, it's not too bit a stretch to expect Amazon cutting them off, too. Not a good trend.
It's a bit crazy. An overreaching decision needs to be worked out. This piecemeal solution is no solution.
Thanks for weighing in, Vitaliy.
Yes, I am in one of those states, Missouri. May, at some point, look into it more to see if something could be done politically to change it.
Feeling the same way. Wonder how we can have a say. But, with Amazon's huge reach, I imagine they are looking out for those who help THEIR business. That means us. But, if I come across any more information I will pass it on. Let's all keep our eyes and ears open.
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Oh my... sounds so complex. So little old me in South Africa is safer trading as an Amazon affiliate than some residents in the US? Who would have thunk it?
I know! That's why I was so surprised when I came across discussions about these laws. =( Nothing about South Africa, though. Whew! =)