Posts tagged with Affiliate Taxes

Colorado's online use tax reporting law ruled unconstitutional

When Colorado politicians pushed an affiliate tax designed to bolster their state's revenue on the back of out-of-state retailers, one thing was certain: the effort would backfire.

After all, we've known for years that states which have tried to find a way to collect sales tax on out-of-state internet sales fail to raise revenue.

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Is Amazon a threat to online retail in the U.S.?

Amazon has been doing battle with states over the collection of sales tax for years.

It has developed a strategy for dealing with states that propose legislation that would force it to collect sales tax as a result of its affiliate relationships: threaten to terminate affiliates in the state if the legislation is passed.

Sure enough, the e-commerce giant has consistently followed through on such threats. The result: Amazon affiliates either have to say goodbye to revenue, or flee to another state. And the states themselves don't generate any of the revenue they thought they were losing out on in the first place.

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Is the US affiliate apocalypse upon us?

If you're an affiliate in the United States, there's a good chance you're not sleeping very well these days.

States continue to wage war against major online retailers, leaving some affiliates cut off from the affiliate programs that they depend on for income. And new battles look set to break out in some of the largest, most important states.

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Affiliate taxes don't work, states continue to pursue them

Thanks in large part to massive budget shortfalls, a number of state governments in the U.S. have pushed for so-called 'affiliate taxes'. The idea is simple: by changing the laws so that online retailers with in-state affiliates are on the hook for collecting state sales tax, lawmakers believe they can increase revenue for their states' coffers.

For the most part, large online retailers have refused to play ball. Amazon, for instance, has cut off affiliates in states that have adopted, or contemplated adopting, affiliate taxes. Others have followed Amazon's lead.

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