June 26, 2009: Seattle
Amazon.com severs all ties with business, marketing affiliates in North Carolina
There’s huge news here in Seattle that reverberates all across the e-commerce universe: Seattle-based Amazon.com notified its North Carolina business affiliates just last night that it will end all ties, effective today, to avoid collecting and remitting sales taxes in that state under new legislation there.
Amazon is also threatening to sever ties with affiliates in California, Hawaii, and several other states.
As previously reported by Sales Tax Buzz, Amazon has gone on record (scroll down to the “Hawaii” section) that it would not oppose legislation that calls for the same sales tax to be imposed across all states. It merely seeks to avoid the complexity of different rules and standards in different states,”The well-established multistate Streamlined Sales Tax Project (“SSTP”) is the legally permissible path for states to follow,” it has stated.
Amazon Associates, the company’s affiliates program, allows for up to 15% in referral fees for click-through ad sales to Amazon.com or its Endless.com site.
The company’s stock price climbed 2% by end-of-trading day today.
If I was a betting person, I’d say we could expect news from Amazon.com pulling out of other states within the week.
For discussion on the Main Street Fairness Act, which would provide a uniform rather than state-by-state solution, read here and the posted comments that follow the e-roundtable.
Filed under: E-Commerce, Legislation Tagged: | Amazon, Amazon Associates, Amazon Tax, Amazon.com, E-Commerce, Internet sales tax, Main Street Fairness Act, North Carolina, North Carolina affiliates, SST
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