New Affiliate Tax Laws

Only for those who have affiliation business in their blog or site.

‘Online retailers such as Amazon that do not have a physical presence are not required to collect sales tax like brick-and-mortar businesses. Big companies like Wal-Mart who are taxed see this as an unfair advantage and are paying lobbyists to push what is now called the “Amazon tax” or the “affiliate nexus tax.”
‘In short, this affiliate tax states that online merchants can in fact be taxed if they have a “nexus” or connection within the state. Affiliate marketers are one of the groups of people viewed as a connection. As a result, state governors in the above-mentioned states are signing a law that taxes Amazon and other online vendors through its affiliates. They are now being treated as having a physical presence and are subject to pay taxes.

‘Amazon has reacted immediately. Wanting to avoid being subject to costly tax inquiries from the government, they are cutting connections to every state that passes the affiliate tax by terminating agreements with all affiliate marketers, leaving many bloggers with decreased incomes and some with no incomes from their blog. As long as there are states that do not tax its sales, Amazon has stated that it will continue to avoid affiliate marketing in the states that do. As of June 30, 2011, California, Colorado, Illinois, New York, North Carolina, Rhode Island, and Connecticut have been affected by the nexus tax…’
How you can make an impact in the Amazon tax battle:

My WebIt link:

About DigitalPlato

Poch is a Bookrix author and a freelance writer. He is a frequent contributor to TED Conversations.
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