Amazon affiliates nixed in two more states
Rhode Island removed, Hawaii punched
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Amazon.com is tearing out two more stars on the American flag to avoid collecting taxes.
The online retailer has dumped marketing affiliates in Hawaii and Rhode Island in protest of the states passing laws that would force Amazon to collect sales taxes from locals.
Amazon's affiliate program pays commissions to website owners who direct buyers to Amazon products. Normally, a store is required to collect a state sales tax only if it has a physical presence in the area. But strapped for cash, many states have followed New York's lead in passing legislation that counts affiliates as near enough to a physical presence to require the tax collection on purchases originating there.
After New York state passed the online levy scheme in 2008, Amazon sued, ,and now begrudgingly plays the tax man.
However, when North Carolina drafted a similar bill this week, Amazon simply pulled the plug on all affiliates located in the state.
Now that Rhode Island and Hawaii are also following suit, Amazon is crossing them out of the program as well. The retailer calls the state laws "unconstitutional," arguing the affiliates program doesn't amount to a physical presence.
Overstock.com took a harder line with New York and began pulling affiliates immediately after the court decision. It's now nixed their program in Rhode Island, North Carolina, and Hawaii too.
The state-by-state showdown could become a much bigger issue now that California is near to joining the sales tax collection drive. Amazon has already hinted its finger is on the trigger. So how about it Golden State, do you feel lucky? Well, do ya, punk? ®
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COMMENTS
Ran an article on incorrect movie quotes!
Golden State, gotta ask yourself one question, Do I feel lucky? Well, do ya, punk?
No local sales tax on internet purchaes.
Its an unworkable system.
We need a national law excepting internet purchases from any local sales tax and then giving individual states the option to implement a state wide internet sales tax. Any change in the internet sales tax would only come into effect once a year.
So the online retailers will have to update a table of 50 sales tax rates once a year ... and consumers will pay the same sales tax no matter what store they buy from.
And the tax collected should be sent to one national agency for distribution to the states.
So one small table of taxes updated yearly .. one tax agency to deal with ... consumers don't have to keep track of which sites will and won't tax them.
I could see that working.
Here is some thing most folks dont know
If I buy a product in New York but live California, I'm required to pay the tax in California. Good luck on getting New York to refund the taxes so you can pay them in California.
Here is some thing else people might know, If you are visiting the the States from another country you don't pay sales tax. IF you are charged sales tax , you can fill out a form at the airport to get your money back.
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