North Carolina

Amazon battles new use tax assault

State-level bureaucrats in the United States have their eyes fixed on
Amazon and other online retailers. The reason: online shopping, in
theory, results in less tax revenue for their states because these
retailers don’t collect sales tax in states in which they have no
physical presence.

Up until now, a number of states have sought to force Amazon and others
to collect sales tax through legislation that would use in-state
affiliates to create ‘nexus‘. With nexus established, online retailers
would be legally responsible for collecting sales tax.

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.

Amazon terminates North Carolina affiliates

If you’re a member of the Amazon Associates affiliate program and live in the state of North Carolina, today was the day you’ve dreaded: your Amazon Associates account has been officially terminated.

Thanks to legislation that threatens to force Amazon to collect sales tax on purchases made in North Carolina even though Amazon has no physical presence in the state on the basis that its contracts with North Carolina affiliates essentially constitute the legal equivalent of such a presence.