Results 1 to 3 of 3
  1. #1
    Join Date
    June 29th, 2009
    N.C. Lawmakers FOR Nexus Legislation
    Please note the date of the source just in case some of these legislators will get the facts and reverse their stance.

    Sen. David Hoyle
    District 43: Gaston County
    Senate Bill S487 Co-Sponsor
    "We're trying to correct a wrong, and I'm sorry some innocent people may be getting hurt in the process, but Amazon owes us," Hoyle, D-Gaston said.
    Source: WRAL
    Date: 7/1/2009
    BizD comment:
    These "innocent people" are North Carolina families and businesses. Senator Hoyle's concept of "correcting a wrong" creates a very cruel "wrong."

    Rep. Jennifer Weiss
    District 35: Wake County
    House Bill H558 Sponsor
    I appreciate you weighing in on this budget proposal that is based on a recommendation of the Revenue Laws Study Commission and is being considered by the House and Senate budget conferees. It is unfortunate that Amazon and other retailers have chosen this course of action as a way to maintain their competitive advantage over retailers who properly collect the tax. Under current law, sales and use tax is legally owed on purchases from Amazon and others like it that, through their affiliate programs, use a commissioned sales force in this State. By failing to collect, those retailers are not complying with the law. The proposed legislation clarifies the existing law. To the extent the State has a responsibility to ensure the proper collection of taxes that are legally owed, it would be irresponsible to ignore this noncompliance when other retailers are properly collecting the tax. The General Assembly has a long-standing track record over the last 10 years of trying to level the playing field between "brick and mortar" retailers and Internet retailers by passing laws similar to this in an effort to achieve fairness and equity, core principles of sound tax policy. In short, Amazon has decided to take an aggressive course of action that harms its affiliate partners in NC in order to try to maintain an unfair competitive advantage that is based on non-compliance with the laws of this State. Amazon should treat its NC affiliates the same way it treated its NY affiliates when NY enacted the very same law by collecting the tax that is legally owed. In addition, people can choose to participate in affiliate programs offered by any number of retailers that collect sales tax in NC, such as Apple/iTunes, Barnes & Noble, Staples, and Walmart, to name a few.
    Date: 7/6/2009

    Sen. Eleanor Kinnaird
    District 23: Orange, Person Counties
    Thank you for your email regarding sales tax on digital products. I understand your desire to continue benefiting from Amazon sales unfettered by state sales tax. I am strongly in favor of the entrepreneurial spirit; however, your freedom from overhead and taxes is a lead weight around the neck of your “bricks and mortar” competition. A business must carry the costs of products, employees, rent, equipment and taxes. I believe that it is only fair for all vendors to have equal treatment under the law; therefore, I will support this tax.
    Date: 7/7/2009

    Speaker Joe Hackney
    District 54: Chatham, Moore, Orange
    Letter from Canaan Huie to House Bill H558 Co-Sponsor Pricey Harrison
    From: Canaan Huie (Speaker Hackney's Office)
    Sent: Tuesday, July 07, 2009 4:44 PM
    To: Rep. Pricey Harrison

    Rep. Harrison,

    This item is still under discussion in the negotiations between the House and Senate, but it is one of the few items on which there appears to be agreement. Amazon and others have chosen an aggressive course of action that harms their North Carolina affiliates in order to maintain an unfair competitive advantage based on non-compliance with the laws of this State. By refusing to collect sales and use taxes that are already legally due, Amazon enjoys a price advantage over both local retailers and online retailers that recognize their responsibility to collect the taxes.

    There are a number of online retailers that are collecting the tax that is due and that have maintained their affiliate programs in this State. I would recommend that website owners negatively affected by Amazon's actions pursue agreements with these retailers. These include some of the other large online retailers like Barnes & Noble, Wal-Mart, Target, Best Buy, and many others.

    I would take issue with the statement that this legislation has been declared unconstitutional by the Supreme Court. The Supreme Court has held that mere advertisement in a state is not enough to establish sufficient nexus to require the collection of sales taxes. However, employing a sales force in a state is sufficient. Through the use of its affiliate program, Amazon and others have compensated agents in this State soliciting sales. They therefore should be collecting the tax that is due. To date, only one court has ruled on the constitutionality of a proposal that is similar to this one (involving the use of compensated affiliate websites). A court in New York dismissed the argument when it was made by Amazon.

    Please let me know if I can be of further assistance.

    Date: 7/8/2009

    Sen. Daniel Clodfelter
    District 37: Mecklenburg
    Senate Bill S487 Sponsor
    This was not recommended by Revenue Laws Study Committee as a revenue-raising measure and doesn't depend on raising any particular amount of revenue. It was recommended as a matter of equitable taxation. The United States Supreme Court has clearly held that a company that pays commissions to agents in a state to refer business to it has taxable presence in the state and is subject the requirement that it collect and remit sales tax on sales made into the state. This is not new law. The form of solicitation; the identity of the agents; the method of payment is not material. Many online retailers currently collect and remit sales tax on sales made and delivered into North Carolina. They compete with companies such as Amazon, as do retailers with physical locations in the state. It is Amazon's choice (and every other company's choice) whether or not to retain commission agents in this state or any other. But if they do so, then they must play by the same rules as do other similarly situated sellers. The tax system should not intentionally favor one group of competitors over another group of competitors by differential application. They sell the same products to the same buyers. Some have said that online retailers should be exempt from collecting the sales tax from NC residents because they don't place any burden on the state. But their products are delivered to NC buyers using the same road and highway network created and maintained by the state government; they use the state's court's to collect monies owed to them and enforce their contracts; the packaging in which their products are shipped must be disposed of in public landfills; and so on. So, again, it isn't about getting more revenue. It is about equitable treatment of all sellers of the same products to NC buyers.
    Date: 7/9/2009

    Sen. Joe Sam Queen
    District 47: Avery, Haywood, Madison, McDowell, Mitchell, Yancey
    The sales tax estimates are actually conservative, using data from PriceWaterhouse Coopers, the U.S. Census, as well as examples in other states. While Amazon has threatened to discontinue sales through affiliates, the action and evidence behind this threat remains to be seen.

    As far as income tax estimates, Amazon affiliates based in North Carolina would not be responsible for any new taxes, only the online retailers, many of whom don't pay any income taxes in North Carolina.

    The legislation is a tool that levels the playing field for many mom and pop businesses selling the same products that online vendors provide. These businesses are required by law to remit sales and use tax, while out of state vendors advertise and compensate in-state businesses, but without remitting sales and use taxes.

    Thank you! Lisa Nelson
    Office of Senator Queen
    Date: 7/27/2009

    I understand your argument, and it has been discussed in the meetings. There is, however, no change in the position that "click-throughs" should be subject to the sales tax.

    Rep. Paul Luebke
    District 30: Durham County
    House Bill H558 Co-Sponsor
    I understand your argument, and it has been discussed in the meetings. There is, however, no change in the position that "click-throughs" should be subject to the sales tax.
    Date: 7/28/2009
    Last edited by BizDocs; July 29th, 2009 at 02:25 AM.

  2. #2
    Join Date
    June 29th, 2009
    N.C. House Members Who Voted AYE

    Alma Adams [District 58: Guilford]
    Kelly M. Alexander, Jr. [District 107: Mecklenburg]
    Martha B. Alexander [District 106: Mecklenburg]
    Lucy T. Allen [District 49: Franklin, Halifax, Nash]
    Larry M. Bell [District 21: Sampson, Wayne]
    Alice L. Bordsen [District 63: Alamance]
    R. Van Braxton [District 10: Greene, Lenoir, Wayne]
    William D. Brisson [District 22: Bladen, Cumberland]
    Angela R. Bryant [District 7: Halifax, Nash]
    Becky Carney [District 102: Mecklenburg]
    Lorene Coates [District 77: Rowan]
    Nelson Cole [District 65: Rockingham]
    Tricia Ann Cotham [District 100: Mecklenburg]
    James W. Crawford, Jr. [District 32: Granville, Vance]
    Margaret Highsmith Dickson [District 44: Cumberland]
    Beverly M. Earle [District 101: Mecklenburg]
    Bob England, M.D. [District 112: Cleveland, Rutherford]
    Bill Faison [District 50: Caswell, Orange]
    Jean Farmer-Butterfield [District 24: Edgecombe, Wilson]
    Susan C. Fisher [District 114: Buncombe]
    Elmer Floyd [District 43: Cumberland]
    Pryor Gibson [District 69: Anson, Union]
    Rosa U. Gill [ Appointed 06/18/2009 ] [District 33: Wake]
    Bruce Goforth [District 115: Buncombe]
    Joe Hackney [District 54: Chatham, Moore, Orange]
    R. Phillip Haire [District 119: Haywood, Jackson, Macon, Swain]
    Larry D. Hall [District 29: Durham]
    Ty Harrell [District 41: Wake]
    Pricey Harrison [District 57: Guilford]
    Dewey L. Hill [District 20: Brunswick, Columbus]
    Hugh Holliman [District 81: Davidson]
    Sandra Spaulding Hughes [District 18: New Hanover, Pender]
    Verla Insko [District 56: Orange]
    Darren G. Jackson [ Appointed 01/26/2009 ] [District 39: Wake]
    Maggie Jeffus [District 59: Guilford]
    Earl Jones [District 60: Guilford]
    Jimmy L. Love, Sr. [District 51: Harnett, Lee]
    Marvin W. Lucas [District 42: Cumberland]
    Paul Luebke [District 30: Durham]
    Nick Mackey [District 99: Mecklenburg]
    Grier Martin [District 34: Wake]
    Marian N. McLawhorn [District 9: Pitt]
    Henry M. Michaux, Jr. [District 31: Durham]
    Annie W. Mobley [District 5: Bertie, Gates, Hertford, Perquimans]
    Bill Owens [District 1: Camden, Currituck, Pasquotank, Tyrrell]
    Earline W. Parmon [District 72: Forsyth]
    Garland E. Pierce [District 48: Hoke, Robeson, Scotland]
    Ray Rapp [District 118: Haywood, Madison, Yancey]
    Timothy L. Spear [District 2: Chowan, Dare, Hyde, Washington]
    Randy Stewart [District 25: Nash]
    Ronnie Sutton [District 47: Robeson]
    Cullie M. Tarleton [District 93: Ashe, Watauga]
    Joe P. Tolson [District 23: Edgecombe, Wilson]
    Russell E. Tucker [District 4: Duplin, Onslow]
    Alice Graham Underhill [District 3: Craven, Pamlico]
    William L. Wainwright [District 12: Craven, Lenoir]
    Edith D. Warren [District 8: Martin, Pitt]
    Ray Warren [District 88: Alexander, Catawba]
    Jennifer Weiss [District 35: Wake]
    Jane Whilden [District 116: Buncombe]
    W. A. (Winkie) Wilkins [District 55: Durham, Person]
    Arthur Williams [District 6: Beaufort, Pitt]
    Larry Womble [District 71: Forsyth]
    Michael H. Wray [District 27: Northampton, Vance, Warren]
    Douglas Y. Yongue [District 46: Hoke, Robeson, Scotland]

    N.C. Senators Who Voted AYE

    Charles W. Albertson [District 10: Duplin, Lenoir, Sampson]
    Marc Basnight [District 1: Beaufort, Camden, Currituck, Dare, Hyde, Pasquotank, Tyrrell, Washington]
    Doug Berger [District 7: Franklin, Granville, Vance, Warren]
    Dan Blue [District 14: Wake]
    Julia Boseman [District 9: New Hanover]
    Daniel G. Clodfelter [District 37: Mecklenburg]
    Charlie Smith Dannelly [District 38: Mecklenburg]
    Don Davis [District 5: Greene, Pitt, Wayne]
    Katie G. Dorsett [District 28: Guilford]
    Linda Garrou [District 32: Forsyth]
    Steve Goss [District 45: Alexander, Ashe, Watauga, Wilkes]
    Malcolm Graham [District 40: Mecklenburg]
    David W. Hoyle [District 43: Gaston]
    Clark Jenkins [District 3: Edgecombe, Martin, Pitt]
    Ed Jones [District 4: Bertie, Chowan, Gates, Halifax, Hertford, Northampton, Perquimans]
    Eleanor Kinnaird [District 23: Orange, Person]
    Floyd B. McKissick, Jr. [District 20: Durham]
    Martin L. Nesbitt, Jr. [District 49: Buncombe]
    William R. Purcell [District 25: Anson, Richmond, Scotland, Stanly]
    Joe Sam Queen [District 47: Avery, Haywood, Madison, McDowell, Mitchell, Yancey]
    Tony Rand [District 19: Bladen, Cumberland]
    Larry Shaw [District 21: Cumberland]
    John Snow [District 50: Cherokee, Clay, Graham, Haywood, Jackson, Macon, Swain, Transylvania]
    R. C. Soles, Jr. [District 8: Brunswick, Columbus, Pender]
    A. B. Swindell [District 11: Nash, Wilson]
    Don Vaughan [District 27: Guilford]
    David F. Weinstein [District 13: Hoke, Robeson]

  3. #3
    Member BrettSaver's Avatar
    Join Date
    July 29th, 2009
    Sacramento, CA
    wow, nice bit of research! NC residents take notice!

  4. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. New Jersey Advertising Nexus Legislation
    By new_jersey_nexus in forum New Jersey Affiliate Tax
    Replies: 9
    Last Post: March 12th, 2012, 01:06 PM
  2. Conference Call 3/9/10 to Discuss Nexus Legislation
    By mellie in forum Affiliate Tax Laws
    Replies: 9
    Last Post: March 9th, 2010, 03:19 PM
  3. N.C. Lawmakers Against Nexus Legislation
    By BizDocs in forum North Carolina Affiliate Tax
    Replies: 0
    Last Post: July 29th, 2009, 01:24 AM
  4. Schwarzenegger Vetoed Affiliate Tax [Nexus] Legislation
    By mellie in forum California Affiliate Tax
    Replies: 27
    Last Post: July 21st, 2009, 01:04 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts