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!