I just got dumped by Amazon as did all Missourians - What do you think?
We are writing from the Amazon Assoc Program to notify you that your Assoc account will be closed and your Amazon Services LLC Assoc Program Operating Agreement will be terminated effective Aug 27, 2013. This is a direct result of the unconstitutional Missouri state tax collection legislation passed by the state legislature and signed by Governor Nixon on Jul 5, with an effective date of Aug 28. As a result, we will no longer pay any advertising fees for customers referred to an Amazon Site after Aug 27 nor will we accept new applications for the Assoc Prog from Missouri residents.
I think these laws are impacting more affiliates ever year as additional states pass similar laws. In addition to Amazon I've been dropped by several other affiliate programs as well due to the same reason.
For my blog I've switched over to Skimlinks which so far has been an effective workaround, although Skimlinks gets cut in on part of the profits as well.
Unfortunately HubPages doesn't offer any options to replace Amazon or Ebay for affiliates effected by these laws.
i would write your local reps explaining to them that by imposing nexus tax on affiliates -- who have no brick and mortar presence and are basically writers -- they are losing income tax money for their state and sales tax money since they just cut off the income that would've let you buy local. (It won't help, but they should be reminded how they're hurting people in their own state.) the whole nexus tax thing is a load of hooey, but it's happened in many, many states. It hit mine a few years back.
Alternatives: the Hubad / Adsense program still works, as do ebay capsules. amazon modules on Squidoo (or Zujava) work because they're through that website's Amazon ID rather than yours, but then you split each commission. On your own websites, skimlinks or viglinks, Zazzle affiliates, Allposters affiliates, or even Barnes & Noble affiliates (Ai think they have a program?) are possibilities.
i don't know about you, but the bulk of my Hub income is via advertising not Amazon. Still, it's annoying.
This happened in Illinois a few years ago. States are looking to generate revenues and there are many "brick stores" complaining about having to collect and pay state sales taxes while millions of "mom & pop" businesses are able to buy and sell products through Amazon without having to do so.
Traditionally a business only had to collect taxes if they had a location in that particular state. Many states today are now calling affiliate programs such as Amazon's to be an extension of their corporation. Therefore they should be required to collect and pay state taxes.
Amazon has chosen to eliminate affiliate programs in states that require them to pay state taxes on sales through those programs. I imagine we are going to see this practice spread. Not long ago there was a community in California that was forced to limit the number of "garage sales" they could have because some local stores felt they were getting away with not having to collect or pay state and local taxes. It was even determined that some of the garage sales were ran by people who bought and resold items that were new.
Essentially big business is looking for ways to eliminate small businesses on a grand scale. Their fear is not with individuals as much as it is with the collective group and states are looking for $$$
This happened in Arkansas 2 years ago. Talk about cutting off one's nose to spite the face...they ended my ability to make taxable income out of a sense of greed and corruption. If they did not think the general population would act as they do, they would have added revenue to the coffers. As one of our fine AR legislators broadcast on National television, "...hey, it's not like we have to pass an I.Q. test to run for Congress..." "Here is your sign."
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