Amazon Drops More Affiliates Over Online Tax Issue
The online retailer has been dropping affiliates in states that approve the collection of sales taxes for online transactions.
Amazon has informed its marketing affiliates in Hawaii and Rhode Island that their business relationship with the online firm has been ended. Amazon has been dropping its affiliates in states that approve the collection of sales taxes for online transactions.
The game of cat and mouse continues as more states pass legislation to collect taxes on online sales and Amazon moves to drop its affiliates in those states. Late last week Amazon told its marketing affiliates in North Carolina that it was concluding its business relationship with the affiliates. Amazon maintains that the state sales tax procedures are unconstitutional.
In the past Amazon -- and other online merchants -- have argued that they shouldn't be required to pay taxes unless they have nexus (physical operation) in the state. However, Amazon lost a suit in New York State in recent months when a judge ruled that the company's marketing affiliates represented a physical presence in the state and that state taxes should be collected. Amazon has challenged the New York ruling, even as it collects taxes.
The North Carolina, Hawaii, and Rhode Island cases hinge on their respective state legislatures passing legislation paving the way for Amazon affiliates to collect taxes. Marketing affiliates have sprung up across the country as Amazon and other online merchants have grown. In Rhode Island, some $3 million in sales taxes are at stake in pending online sales tax legislation while the figure in North Carolina has been estimated at about $6 million.
InformationWeek Analytics has published an independent analysis on increasing application performance. Download the report here (registration required).
Time to Reconsider Enterprise Email StrategyCost, time, and risk. It's the demand trifecta vying for the attention of both technology professionals and attorneys charged with balancing the expectations of their clients and business units with the hard reality of the current financial and regulatory climate. Sometimes, organizations assume high levels of risk as a result of their inability to meet the costs involved in data protection. In other instances, it's time that's of the essence, as with a data breach.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.
Top IT Trends to Watch in Financial ServicesIT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Join us for a roundup of the top stories on InformationWeek.com for the week of October 9, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."