[PolkSDA]

Just received in email:

Hello,

For well over a decade, the Amazon Associates Program has worked with thousands of Illinois residents. Unfortunately, a new state tax law signed by Governor Quinn compels us to terminate this program for Illinois-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by Illinois-based affiliates like you - even if those retailers have no physical presence in the state.

We had opposed this new tax law because it is unconstitutional and counterproductive. It was supported by national retailing chains, most of which are based outside Illinois, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that its enactment forces this action.

As a result of the new law, contracts with all Illinois affiliates of the Amazon Associates Program will be terminated and those Illinois residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, or SmallParts.com. Please be assured that all qualifying advertising fees earned prior to April 15, 2011 will be processed and paid in full in accordance with the regular payment schedule. Based on your account closure date of April 15, 2011, any final payments will be paid by July 1, 2011.

You are receiving this email because our records indicate that you are a resident of Illinois. If you are not currently a permanent resident of Illinois, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state after April 15, please contact us for reinstatement into the Amazon Associates Program.

To be clear, this development will only impact our ability to continue the Associates Program in Illinois, and will not affect the ability of Illinois residents to purchase online at Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more from Amazon’s retail business.

We have enjoyed working with you and other Illinois-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to Illinois residents.

Regards,

The Amazon Associates Team

[sunshiner]

This isn't good. Keep us posted if you get any from other programs.

[MichaelColey]

Moderator Note: Moved this to the Illinois Affiliate Tax forum, then moved it back with a redirect, so that we'll have a link to it from there.

A lot of HUGE affiliates in Illinois. I know at least some are planning to move to neighboring states. Indiana and Wisconsin could certainly benefit from this. When are the states going to learn?

[Convergence]

Originally Posted by MichaelColey

When are the states going to learn?

They're not going to learn until it's too late. I sent several letters to then Gov. Ritter in Colorado as Colorado was trying to pass their tax bill explaining the loss of jobs, tax revenue, etc would NOT be offset by the sales tax they would NOT collect.

Colorado, too, is home to some very large affiliates, ie: Shopathome...

[edit] BTW, Colorado unemployment just hit 9.1% for January (February will be even higher)...

[cowboysfan]

Originally Posted by sunshiner

This isn't good. Keep us posted if you get any from other programs.

yes.....i'm interested to know all the programs that will follow amazons way.

[delstu]

"You are receiving this email because our records indicate that you are a resident of Illinois. If you are not currently a permanent resident of Illinois, or if you are relocating to another state in the near future, you can manage the details of your Associates account here."

I moved my business to Indiana. Hopefully, changing my info as stated above will take care of the problem, at least for now.

Seriously considering incorporating in Delaware, or maybe better to go offshore. What do you think?

[cowboysfan]

They are never going to learn. They don't care about affiliates...they only care about political gain. We need to take a stand, somehow, someway.

[delstu]

Would incorporating offshore be considered "Taking a stand"?

Are other countries watching before deciding to tax online sales?

Where does it end?

[JudiMoore]

I started a thread in the Arkansas Tax forum about merchants dropping us. We're about 2 weeks behind IL in the passing of the law, but I've got at least 10 Termination letters so far. I forward each one to my Representative. He even posted my letter to him on his blog. He and I disagree on just about everything, but on this issue, we're on the same side. But he said we can't even try for an appeal until 2013 because no one in the legislature is interested in trying now. Walmart wants this passed in every state with sales tax and they might succeed.

[Nick_Reyes21]

Are states ever going to learn that they benefit from online revenue in different ways than revenue from brick and mortar stores?

[cowboysfan]

no.....and apprantly the brick and mortar stores are never going to learn that they need the internet as a major part of their business model.

[Nick_Reyes21]

They'll learn but it will be way to late, as the ones that are too slow to realize how affiliates/publishers drive sales will be bankrupt......hopefully.