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I just got an email from the Amazon Associates program and because of Illinois' new tax laws, Amazon is no longer allowing IL residents to participate in the program. Now that's discouraging to someone who has just recently begun on Hubpages
I expect to soon receive the same e-mail since Arkansas pass an online sales tax bill today.
@bewhuebner this is some bad news..I received the email as well. It is discouraging as well for those who have worked hard to earn thru amazon.
I got mine yesterday. It's very discouraging to me because I write a lot of Hubs that concern book lists, history and other topics compatible with featuring amazon books--and this is my highest selling site. I'm hoping HubPages can work out an agreement with Barnes & Noble, Walmart and other stores that are actively pursuing ex-amazon affiliates.
Too bad. Maybe other states will be following that lead? Every state is trying to figure out ways to get more income. I earn much more with Google Adsense than I ever have with Amazon if that is any consolation.
Well be careful where you do move, because Amazon has left many other States already too.
I didn't know that? They raise our state tax, then remove our Amazon? Is there any honor left in Illinois?
This is a tax I don't agree with. There's a loophole built into the law, so all a retailer has to do is eliminate it's physical presence in the state (whether it be stores or online affiliates) and they can avoid paying the tax. The end result is the state gets no tax revenue from the retailer and no income tax revenue from the affiliates.
So maybe I am not understanding this. Texas tries too tax amazon (the biggest online store by far that offers nothing to the texas economy except to take money out of it). Then Amazon gets mad and takes it out on the affiliates. And we are supposed to feel bad for amazon. Guess it is good to be in Washington state where we know we will always be paying a tax on amazon purchases but seems like the affiliate program is safe.
I agree with you. I'm not happy with Illinois for passing the law--but I'm equally as disappointed in amazon. Eventually Washington will be the only place left with affiliates. I big part of me hopes that amazon loses more revenue through the loss of its affiliates as it would have had to pay out if it had to implement state sales taxes.
What is Amazon going to do if all of the 50 states pass this law?
At least you might be able to make up for some of it with an invite to HP's new ad program...
I have been living in Florida so much.. I think it is about time I make the switch.
I would punch Quinn right in the face..(I am from Illinois)
Emotions aside, how do I handle my hubpages account if the law does pass in my state? If I can no longer be an Amazon associate, what happens to my links?
This is much as I could help you.. They do say something about switching states, which has been on my mind for some time now.
Here is the Email I received.
For well over a decade, the Amazon Associates Program has worked with thousands of Illinois residents. Unfortunately, a new state tax law signed by Governor Quinn compels us to terminate this program for Illinois-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by Illinois-based affiliates like you - even if those retailers have no physical presence in the state.
We had opposed this new tax law because it is unconstitutional and counterproductive. It was supported by national retailing chains, most of which are based outside Illinois, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that its enactment forces this action.
As a result of the new law, contracts with all Illinois affiliates of the Amazon Associates Program will be terminated and those Illinois residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, or SmallParts.com. Please be assured that all qualifying advertising fees earned prior to April 15, 2011 will be processed and paid in full in accordance with the regular payment schedule. Based on your account closure date of April 15, 2011, any final payments will be paid by July 1, 2011.
You are receiving this email because our records indicate that you are a resident of Illinois. If you are not currently a permanent resident of Illinois, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state after April 15, please contact us for reinstatement into the Amazon Associates Program.
To be clear, this development will only impact our ability to continue the Associates Program in Illinois, and will not affect the ability of Illinois residents to purchase online at www.amazon.com from Amazon’s retail business.
We have enjoyed working with you and other Illinois-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to Illinois residents.
The Amazon Associates Team
I'm claiming residency in a different state, its all I can do. I've been in Florida for at least 3-4 months already, haha. I hope this doesn't happen to you guys!
I have been having all types of bad news when it comes to this site and the internet!!
You should take down your Amazon links. If the hubs can't be converted to Adsense only, then delete them. There's no point in sending Amazon traffic without the promise of a commission. If you aren't an ebay affiliate, there's really very little alternatives for you on HP.
Then learn to write for adsense or the new HP affiliate program. There is money to be made from adsense on HubPages.
You should probably learn that, because Amazon isn't the only affiliate program that will refuse to work with you. Probably 90% of them won't touch you if you live in an internet tax state.
If I were young and single, I'd consider moving a few miles to the next state, but I'm not and it isn't going to happen. As soon as the law passes here, I'll take down those links and redirect everything to Squidoo where at least I'll be able to earn half of the Amazon commissions using the AZ modules there. And yes, I'll write here with the other commissions in mind. Thanks for the input and suggestions!
The Texas physical nexus law has merely been introduced -- in late February. It hasn't been out of committee yet, and therefore it has not passed.
What happened in Texas is that the state comptroller's office demanded millions of dollars in sales taxes from Amazon, citing the presence of an Amazon warehouse in Irving as creating a physical presence in our state. Very soon after that, Amazon announced that it will be relocating its warehouse to another state by April, in a move to side-step the collection of sales taxes. Shortly after that, a state rep introduced the legislation that makes a Texas affiliate a physical nexus in Texas.
If you're in Texas, you can follow the progress. There is a Google group to which I belong.
I received the Illinois e-mail too. Saw the post suggesting that we remove all amazon links from our hubs. The law goes into effect on 4/15, so I wouldn't remove them until after that date.
I'm in Mauritius so the laws won't affect me. I do hope Amazon will change its mind and protect its affiliates. They are so big. They have the means to pay the taxes.
They did the same thing in Colorado over a year ago. Lots of states seem to be passing unconstitutional laws - at least according to Amazon.
If your amazon hub is actually making money then it would be crazy to just delete it. Find someone in another state and have them become an amazon affiliate and make a deal about sharing the revenue.
I got the email too. The way I going to work it is this way. I going to write about stuff here that does not depend on amazon for sales and write informational hubs and when it comes to writing about products, I figure the best way to do it is use a site that does not require you to have an amazon affilate account, but still make money through amazon.
I am not so sure about that. Like Susan (if it happens to her), I will be using Squidoo to make some money from amazon and write sales lenses there, but also have it where I link back to here on a similar hub with a different focus. I have been a member of that site for 2 years like I have for this site. I make some money from Amazon over there as we do not have to supply a amazon affiliate code over there.
I knew in January that there was a possibility so I pretty much was prepared for this. I already had a semi backup plan. I had already taken off links to Amazon on my own website and lucky for me I have been also part of googles affiliate network so I had put up some ads on my blog for things that I can put up like Barnes and Nobles. It does not help for here. If the ways things keep going, there will not be any affiliates anymore because all states are trying to pass this type of law.
I did not make a whole lot through amazon, but it added up. At the end of this month, I will be seeing the most I ever had.
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