Possible Termination Because of New Illinois Legislation

1. 42

   Mikeydoesposted 13 years ago

   I just got this as an email. Hopefully it gets resolved, otherwise I have to move.
   
   Greetings from the Amazon Associates Program:
   We regret to inform you that the Illinois state legislature has passed an unconstitutional tax collection scheme that, if signed by Governor Quinn, would leave Amazon.com little choice but to end its relationships with Illinois-based Associates. You are receiving this email because our records indicate that you are a resident of Illinois. If our records are incorrect, you can manage the details of your Associates account here.
   
   Please note that this not an immediate termination notice and you are still a valued participant in the Amazon Associates Program. But if the governor signs this bill, we will need to terminate the participation of all Illinois residents in the Associates Program. After that point, we will no longer pay any advertising fees for sales referred to amazon.com, endless.com and smallparts.com nor will we accept new applications for the Associates Program from Illinois residents.
   
   The unfortunate consequences of this legislation on Illinois residents like you were explained to the legislature, including Senate and House leadership, as well as to the governor's staff.
   
   Over a dozen other states have considered essentially identical legislation but have rejected these proposals largely because of the adverse impact on their states' residents.
   
   Governor Quinn's office may be reached here.
   
   We thank you for being part of the Amazon Associates Program, and wish you continued success in the future.
   
   Sincerely,
   
   Amazon.com

   replyreport
   1. 60

      dutchman1951posted 13 years agoin reply to this

      sooo...now states can regulate US Trade and communications?????
      
      what the h... are we turning in to....wow

      replyreport
2. 69

   Flightkeeperposted 13 years ago

   Dude, this is serious.  You need to call your representative right away and let your governor know that you want her to veto that law because if she signs that bill, Amazon will cut all its Illinois affiliates and you won't make any money from amazon until you move to a state that is friendlier to Amazon.

   replyreport
3. 0

   Nelle Hoxieposted 13 years ago

   You should contact this group http://www.performancemarketingassociation.com/. They have helped defeat this legislation in many states. And it's not just Amazon you'll lose. Probably 90% of all affiliate programs will drop Illinois affiliates.
   
   This has happened before in RI, NC and CO. I used to post legislative updates here warning Hubbers to get involved, but there was so little interest that  stopped. I hope this gets more peoples attention.

   replyreport
4. 90

   Rochelle Frankposted 13 years ago

   That's just plain wrong. Do they know what this will do to people who are unable to work at 'regular' jobs? Some, due to illness or injury are trying to support themselves from their home keyboards.
   Why do they think this is a good idea?

   replyreport
5. 86

   IzzyMposted 13 years ago

   If this spreads, there is a risk that Amazon will stop their affiliate program altogether and then we will all suffer.

   replyreport
   1. 78

      kirstenblogposted 13 years agoin reply to this

      More likely all affiliates will be people living abroad, with their own tax laws and such. Being as I am in the UK I am less worried about my account but I do feel for my American affiliate kin

      replyreport
   2. 0

      Nelle Hoxieposted 13 years agoin reply to this

      Yes, that is a very real possibility. To my ire, a European on this board said several months ago that the more Americans that lose their affiliate status the less competition for her.
      
      I honestly don't think it will work out that way. She seemed to forget that HP is an American site in an American state - and an affiliate.
      
      BTW the Performance Marketing Association is now working in California (home of Hubpages) because they fear that the CA tax is coming back. It's been under consideration for two years now.

      replyreport
      1. 59

         Mark Knowlesposted 13 years agoin reply to this

         I think it is far more likely that Amazon switch to a PPC model as ebay have done. I assume this is the reason ebay switched.
         
         Personally - I think this is going to get worse - with more and more taxes from more and more directions, no matter where you live. UK VAT has just gone up to 20%

         replyreport
         1. 0

            shazwellynposted 13 years agoin reply to this

            Which is alright if you live in France!!!!!

            replyreport
            1. 59

               Mark Knowlesposted 13 years agoin reply to this

               Yeah - only 19.6% here....

               replyreport
6. 59

   Pandoras Boxposted 13 years ago

   Yeah that's scary. Hopefully Quinn will realize it isn't worth pursuing. All it does is force amazon and ebay to stop doing business with state affiliates, which will only put more people on the needy list. They ought to know by now that it isn't working. Every state they've done it in has had the same results. Business simply gets pulled.
   
   Maybe I'm missing something, but I can't understand why they keep trying it.
   
   I hope Quinn doesn't sign, Mikey!

   replyreport
7. 42

   Mikeydoesposted 13 years ago

   I posted here because it affects me greatly, and I am aware it can end up hurting you guys as well.
   
   I can't let this happen, Amazon has been a cash cow for me these last 3 days. Made $50 dollars first day($1000 purchase), $1-2 second day, and now I got almost $500 of products order today that haven't been shipped yet!
   
   Thanks for your suggestions I will get on them right away. That is why I posted here, to get the word out and hopefully get some good ideas.
   
   Thanks
     Mike

   replyreport
8. 62

   Wayne Orvisburgposted 13 years ago

   I just got this email as well. What a crock!
   
   Illinois is even trying to tell residents they need to pay sales tax on all items purchased online in the last few years. Yeah right! This broke state is reaching! I believe U.S. Supreme Court has already ruled that a state cannot collect sales tax on an item purchased from another state.
   
   Hope this bill gets shot down!

   replyreport
   1. 0

      Nelle Hoxieposted 13 years agoin reply to this

      No that's not quite true here. They are using you, the affiliate, as the local nexus - so that's making it a local tax issue. That's why the affiliate is under fire.
      
      BTW the state of Texas is considering a law that if you're internet provider has a server in the state, your company will be liable for an internet sales tax.
      
      Guys get in touch with the Performance Marketing Association and get to know your state reps really well. But don't do it without all of the correct info and data. This has been defeated in lots of places.

      replyreport
9. 0

   Nelle Hoxieposted 13 years ago

   Mark Amazon.co.uk seems just fine with collecting VAT. That's not the issue, because every company has to pay the tax.
   
   In the US if you buy a book from Amazon it's tax free. If you buy a book from Barnes and Noble.com you pay a state tax, because B&N has a physical presence in every state in the country.
   
   Amazon does not want to lose that competitive edge. Kindles are tax free - Nooks are not.

   replyreport
   1. 90

      Pcunixposted 13 years agoin reply to this

      In most states, it is NOT tax free. You still owe the tax, it's just that Amazon didn't have to collect it We even have a place on our MA tax return to report sales tax we owe (and yes, I do track my purchases and I do report them)..
      
      One simple solution would be for Amazon to report the sales to the states. Let them collect the tax from the individuals.

      replyreport
   2. 59

      Mark Knowlesposted 13 years agoin reply to this

      I understand the dynamics. I was merely pointing out that this over-taxation issue to deal with the deficits is going to get worse. Europe collects it's sales taxes already - online or not. The US does not. It will do. If I order from Amazom UK - they charge me French VAT. As an affiliate - I am required to report my earnings from Amazon and pay income taxes already. I am not required to collect the sales taxes - yet.
      
      But I think Amazon will offer US affiliates a PPC earning model instead of dropping the program altogether if push comes to shove.
      
      Unfortunately - what all of you seem to be missing is the fact that - if Amazon are required to collect sales taxes and drop affiliates - people in Illinois for example will gain no benefit from buying online - and we may well see an increase in sales from bricks and mortar stores in that state which will offset the losses of income tax from affiliates.
      
      Sooner or later we are going to see this sales tax loophole closed. In which case online stores in the US better start offering another reason to buy from them. In France - it is no contest - I will always buy from Amazon UK rather than be treated like a moron in a store.

      replyreport
10. 63

    prettydarkhorseposted 13 years ago

    http://hubpages.com/forum/topic/64091
    
    Hi Mikey, hope he doesn't sign and for those of us who can do something, then it is time to do our homework, the sites Ms Nelle are sharing are helpful. I saw she posted this before http://nyaffiliatevoice.com/ and this one http://affiliateadvocacy.com/2010/did-a … s-and-why/
    
    Sample letter on how to How to Voice Opinion on Bills to Legislators
    
    http://affiliateadvocacy.com/how-to-voi … gislators/
    but this Illinois bill was already passed.

    replyreport
    1. 42

       Mikeydoesposted 13 years agoin reply to this

       Very good post, thank you.
       
       Interesting, I really knew nothing about this whole situation, thanks for filling me(and hopefully everyone) in.

       replyreport
11. 65

    Trekkiemelissaposted 13 years ago

    This effects me to too.  I may not make a lot with amazon, but I hardly go a month without making some money from them.  I have had the account for a long time, but have seen that I have been making money through Amazon because of here.
    
    For the people whom make a whole lot, its going to be a huge blow.  Some people really depend on that money.  Its either as a living or just to pay for their hosting.
    
    They have done it to other states in the past and now its coming to Illinois.  They won't think twice about shutting the program down.

    replyreport