Posts tagged with Rhode Island

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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Amazon to clueless lawmakers: we're not playing games

Last week, Amazon.com terminated all Amazon Associates in North Carolina because of pending legislation that would have required Amazon to collect and pay sales tax on sales to customers in North Carolina on the grounds that Amazon's relationship with affiliates in North Carolina gave it a presence in the state.

Amazon's pre-emptive measure sent a clear message: we're not messing around with states that want to implement tax collection laws that we believe to be unconstitutional.

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