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Current List of Companies / Websites Dropping Webmaster Affiliates Due to New Internet Tax Law (Amazon, etc.)

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So, ever since Illinois Gov. Quinn signed HB 3659 into law, websites / companies have been dropping it's Illinois affiliates like they were holding an atom bomb. The discussion is; are these companies just trying to skirt paying their taxes, or are the states that are enacting these new internet taxes to blame?

 

Regardless of who's to blame, it's the webmaster's that reside in these taxed states that are being punished during this little chess match they're playing with each other, using it's webmasters and residents as the "nameless, faceless pawns".

 

As the internet gets bigger and more relied upon by everyone, which it certainly won't be getting any less so in the future, people (like Uncle Sam for example) are going to be putting their greedy hands out for a cut of the action, even if they have to take it from you, it's inevitable. When it comes down to brass tacks, taxes are taxes, and eventually, no matter how much you try to run and hide from them, they're going to catch up to you; so as much as it hurts (and sucks), and we all would much prefer it to stay the way it was, sans taxes, the fact is, Government being what it is, (totally inept at managing it's budget) it might be time to face Uncle Sam people (Amazon, et. al.). Whether it be today, or 10 years from today, one way or another eventually the taxes will be there and we all know it. Quit punishing the little guy who's trying hard just to earn a buck.

 

It's this sites opinion that AmazonAmazon (in particular, which seems to be the leader in this war against taxes) does not have a physical presence in states in which it's affiliates are sending them sales, unless AmazonAmazon actually does have a physical building in the same place as the affiliate who made the sale.Last time I checked the words "physical presence" meant a solid object which could be physically touched by a hand, or foot, or even a rock thrown at. Being an affiliate in one of those taxed states, I may be a physical person that can be touched, but I'm not AmazonAmazon itselfAmazonAmazon doesn't provide me with health insurance, stock, a 401K plan, or any other benefits of being an employee. If anything, I may be a "sub contractor" and that's even using the term very loosely, so sorry Illinois, (and similar states) as much as I'd like to see even more money thrown your way to burn and mismanage, we think you're offbase on this one.

 

Nonetheless, here's an always updated list of all companies who have affiliate programs, and are dumping it's affiliates who live in taxed states:
(Illinois, New York, Connecticut, Arkansa, Colorado, North Carolina, Rhode Island and South Dakota).

  • Amazon
  • Overstock
  • Newegg
  • Thinkgeek
  • GoDaddy
  • Avantquest
  • Skype
  • One Step Ahead
  • OnlineShoes.com
  • Oriental Trading
  • Palo Alto Software
  • Red Envelope
  • ReStock It
  • Ritz Camera
  • ShopNBC
  • ShoppersChoice
  • Silhouettes
  • Spilsbury
  • Spring Hill
  • Thompson Cigars
  • Tirerack
  • uBid.com
  • eToys
  • Fingerhut
  • Footsmart
  • Gaiam.com
  • Garden's Alive
  • Geeks.com
  • Gurneys
  • Henry Fields
  • Jewelry Television
  • J&P Cycles
  • Justflowers
  • Karmaloop
  • KB Toys
  • LampsPlus
  • Leaps And Bounds
  • LinenSource
  • Luggage.com
  • Michigan Bulb
  • Musicians Friend
  • MyTwinn
  • NetShops
  • Northern Tool

These are the companies that we are currently aware of, we are sure there are more, if you know of more companies who have dropped it's affiliates do to this current battle, post so we can keep the list updated.

 

These states are next in line to add taxation:

  • Arizona
  • California
  • Hawaii
  • Louisiana
  • Mississippi
  • New Mexico
  • Vermont

Be sure to weigh in on this situation with your own opinion. Who's right, who's wrong?

 
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Re: Current List of Companies / Websites Dropping Webmaster ...

Here are some more good reads on the whole situation:

 

Amazon to Connecticut, Arkansas: ‘Drop Dead’ Over Sales Tax - Wired.com

Amazon CEO Jeff Bezos wrote:

"We will continue to drop states who pass those affiliate laws, from the affiliate program” Bezos said in comments cited by Reuters.

Amazon Affiliate Tax Is Unconstitutional - Affhelper.com

Pawel Reszka wrote:

"Instead of going after small US affiliates the law makers should impose some kind of laws on affiliates outside of USA who are raking in the money because they don’t need to obey some of the ridiculous laws we have to. International affiliates get away with not disclaiming they get paid for recommendations. They don’t have to pay income tax in some cases, but yet they advertise in US and making money hand over fist from sales made by US citizens.

Illinois Government Sued Over AmazonAmazon Nexus Law

Quote:

Now, the Performance Marketing Association (PMA) has gotten involved. The group, a non-profit trade association, recently filed a lawsuit with the U.S. District Court against the Illinois Department of Revenue. The suit challenges the constitutionality of the newly-adopted law, and claims that it unfairly discriminates against the affiliate marketing industry, which directly violates the federal Internet Tax Freedom Act.

New Internet Sales Tax Laws Causing Major Issues for US Merchants & Affiliates - Clicknewz.com

Finance panel revives 'AmazonAmazon Law' to pursue online sales tax - CTMirror.org

Keith M. Phaneuf wrote:

Consumers still are obligated to report their online purchases and pay any sales tax owed through their annual income tax filings, but lawmakers concede that relatively few households actually do so.



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Re: Current List of Companies / Websites Dropping Webmaster ...

Don't be fooled by AmazonAmazon and all of those other merchants' tough stand by booting it's affiliates in those states, Illinois had tens of thousands of affiliates, and as they lose affiliates in bulk in each other state they're taking an ENORMOUS financial hit from traffic and sales to their sites. This fight can't seemingly go on for too long, too much money is on the line, and money talks more than anything else in this world.

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Re: Current List of Companies / Websites Dropping Webmaster ...

 The company I work for part time, The Home Depot. Posted a news letter in our break room telling us how much it sucked that online companies got break and how we need to GET INVOLVED to have them pay taxes.. ( The bill, HB 2403) 
  ALSO preached " The store that wrote our Governour the Most would win a PIZZA PARTY!!!!"

  BTW our store is at 2,  the leading store has 23...guess no pizza for me :( 

 

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Re: Current List of Companies / Websites Dropping Webmaster ...

ROFL yea, it's one of those things that's a double-edged sword; without taxes appended we all generally get better deals / lower prices on things bought online, but the other side of the coin is your state doesn't make some extra money for whatever it needs (to waste it on).

The Brick and Morter stores, like Home Depot (love that place btw, Laughing) hate that some online merchants don't have to pay taxes because it puts them at a disadvantage since they have to pay the taxes. I have to wonder about the legality of what they did by bribing it's employees to write the Gov. with pizza, Laughing. Kinda sounds like politicians paying off people to vote for them at the polls.



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