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).
How Enterprises Are Attacking the IT Security EnterpriseTo learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
2017 State of IT ReportIn today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.