CA decides to tax Amazon sales

1. 72

   relacheposted 14 years ago

   Looks like CA Amazon affiliates might be the next to find themselves dropped from the program...
   
   http://taxprof.typepad.com/taxprof_blog … asses.html

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   lynnechandlerposted 14 years ago

   Just another reason for Hubs to get on the ball and find us another affiliate, lol.

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3. 72

   relacheposted 14 years ago

   Lynne,
   
   The reason that Amazon keeps dropping states who decide they have collect taxes from affiliates is because the revenue Amazon earns from affiliates is so small.
   
   If the money that HubPages earns from Amazon also happens to be small when compared to other revenue streams, they might not consider finding more affiliates to be all that essential.

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   Michael Willisposted 14 years ago

   I know in Arkansas our legislators have tried vehemently to Tax any internet purchases. It has failed so far, but it keeps getting brought up and I can see it finally being passed. This is Arkansas and our legislators love taxing people. They will see Ca as an example.

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   wrenfrost56posted 14 years ago

   Ouch! Thought this was wearth a bump. wonder how it will pan out?

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   Nelle Hoxieposted 14 years ago

   It's not just Amazon and it's not just California. Probably 80 percent of all companies with affiliate programs will drop California affiliates if the law passes. This is what happend to friends of mine in New York. Overstock, for example, just sent out letters to California affiliates warning them that they won't keep them. So the options are limited for California affiliates. (I believe HubPages is a California affiliate.)
   
   Virginia and Maryland are two other states that are considering the same legislation.
   
   If you're wondering what the status of your state is - here's a great resource. http://nyaffiliatevoice.com/
   
   It also lists companies that have continued to work with affiliates in NY, RI, and NC.

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      relacheposted 14 years agoin reply to this

      I'm hoping that if this law goes through that HubPages will continue to allow those of us in states that can still earn from the Amazon capsule to continue to do so even if they have to give up their 40$ share.

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7. 58

   Mark Knowlesposted 14 years ago

   I make the bulk of my hubpages income from Amazon sales so.. Fingers crossed......

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8. 0

   Nelle Hoxieposted 14 years ago

   I'm hoping that they are meeting with state reps and showing them how much money the state would lose in revenue.
   
   Because most of the companies drop affiliates and any other local connections - the states don't see any increased revenue. And they lose the income taxes that affiliates pay.
   
   This is why I've only been making ebay and adsense related hubs for months now.
   
   I believe that Amazon will need it's affiliates more and more. Walmart has decided to go after them big time, because Wal-Mart wants to be the biggest online retailer.
   
   On all of my new personal websites, I only promote what are known as New York friendly merchants.

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   Nelle Hoxieposted 14 years ago

   Or HubPages staff will have to move to another state. But these laws are popping up everywhere.

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10. 61

    Jane@CMposted 14 years ago

    This sucks, I'm moving to Cali!  I just started affiliate marketing on my web site, wonder how many are not CA friendly.
    
    So is affiliate marketing coming to an end with all of these states starting to charge tax?  These laws are passing in many states & more and more states are jumping on the bandwagon.

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11. 0

    EmpressFelicityposted 14 years ago

    General rant: sales taxes of ANY kind are a crap idea, IMO.  Talk about stifling enterprise!
    
    In Britain we have VAT, which is currently 17.5%.  If you're a business earning above a certain threshold you can become VAT-rated which means you can claim back the VAT on your purchases.  But it involves a lot of admin and hassle.  And those of us whose earnings aren't high enough to qualify, or who just have regular, pay-as-you-earn jobs, are penalised because we have to pay VAT but can't claim it back.
    
    Plus you have these strange anomalies - for example in Britain VAT is payable on biscuits (cookies) but not cakes.  Cue extensive legal wrangles (is a Marks & Spencers teacake a biscuit or a cake?) and general pointlessness.
    
    I've long suspected that the sole function of things like VAT is to give jobs to bureaucrats who would otherwise be unemployable.

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12. 0

    girly_girl09posted 14 years ago

    It wouldn't surprise me if my state does this soon. Luckily, I don't think they will this session; I'm watching closely and have some legislative friends keeping their ears open. You can be darn sure I'll be making a huge stink at my state house if that happens!!
    
    It is really scary because I've been doing a lot with Amazon lately and have made over $150 this month from Amazon alone - best month ever. I really love Amazon; so much potential!! It used to be that my earnings were a bonus, but now I'm making equal amounts from Adsense and Amazon.
    
    I can't seem to get approved for eBay.
    
    I, too, hope that HP will still let us use Amazon capsules...perhaps they could just replace our capsules with YieldBuild ads 40% of the time, instead? I would be cool with that. I would lose motivation to keep writing if I lost Amazon, that's for sure.

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    Nelle Hoxieposted 14 years ago

    Jane, go to the link in my first post on this topic and find companies that are willing to work with New York Affiliates. After reading the law, some of these companies just prohibit email marketing or PPC bidding. You have to sign an affidavit that you won't do these things once a year. It depends how the state defines local presence which forces the sales tax. Or if you sign up with companies like Wal-Mart - they already have a physical presence int he state.
    
    If you're going to make a living doing this, then you have to start monitoring the situation and be prepared.

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    Jane@CMposted 14 years ago

    Thanks Nelle, I've been monitoring it for Minnesota but I had thought forward to CA, as I should have.  I will check your link.  I also view a forum for CA Affiliates and am getting lots of info on that forum.

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    A Texanposted 14 years ago

    California just taxed this sentence!

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    Hovalisposted 14 years ago

    From a purely selfish point of view, I hope they keep the capsules and allow the affiliates who can still use Amazon to do so. I've only just started pushing Amazon and seeing results. You've got to wonder, really, what the legislators are thinking, especially in CA which has a lot of these types of businesses, if  all they will end up doing is driving business away and doing nothing for their coffers.
    
    I hope this doesn't pass for HubPages and all the hubbers who've spent so much time getting Amazon to work for them.

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    Jane@CMposted 13 years ago

    I've been researching if Amazon did remove itself as an affiliate for CA residents.  I haven't found anything?  Has anyone else see any articles that could point me in the right direction.  I have not removed my Amazon capsules as of yet (but I still have a Minnesota address) .

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    sunforgedposted 13 years ago

    incorporate in nevada
    
    Nevada has no corporate income tax, no state income taxes, no personal income taxes, and no tax on the shares of stock
    
    
    Im incorporated in NY - but Im pursuing this tactic to protect future earnings

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    habeeposted 13 years ago

    I went to the site but didn't see anything about GA.

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    psycheskinnerposted 13 years ago

    We may not want to be taxed, but why should online merchants not pay tax on those who sell via stores are.  That doesn't seem fair and it puts pressure on Mom and Pop stores who are already struggling because they end up paying for stuff other people use tax free.

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