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  1. #1
    Member jkgourmet's Avatar
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    Question What options for affiliates in a soon-to-be nexus state
    As an Arizona resident and affiliate, I believe that I am about to be hit with the nexus situation with Amazon and other merchants.

    In an effort to think ahead, what are my options IF Amazon et al decide to drop all the affiliates who reside in Arizona?
    Jeanette
    [URL="http://gringodog.com"]Gringo Dog - Pet Friendly Travel[/URL] in Mexico, Canada and the USA

  2. #2
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    If Amazon terminates its advertising relationship with you, then you'd need to search for other advertisers who won't do that -- specifically, advertisers who already collect Arizona sales tax, or who otherwise aren't impacted by the "advertising nexus" issue.

    See this discussion:
    Search for merchant by state - ABestWeb Affiliate Marketing Forum
    Last edited by markwelch; March 1st, 2011 at 02:08 PM.

  3. #3
    Member jkgourmet's Avatar
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    Thanks, Mark. I realize that is an alternative. But the sales that I get from Amazon on one of my sites often have nothing to do with my niche - just people shopping while they are there, maybe because they got the Free Super Saver Shipping - would have an bigger impact that I'd like to admit.

    But what about somewhat gray areas - an LLC or POB in Delaware, for example? And setting up a bank account in that state for direct deposit?

    Or has anyone used Viglink?
    Last edited by jkgourmet; March 1st, 2011 at 02:27 PM.
    Jeanette
    [URL="http://gringodog.com"]Gringo Dog - Pet Friendly Travel[/URL] in Mexico, Canada and the USA

  4. #4
    ABW Ambassador 2busy's Avatar
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    There are many posts from other affiliates who have been in the shoes you are in now, pages of posts that can help you learn "what's next", a good one is: Any solutions without moving? - ABestWeb Affiliate Marketing Forum
    Good Luck.

  5. #5
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    Quote Originally Posted by 2busy View Post
    There are many posts from other affiliates who have been in the shoes you are in now, pages of posts that can help you learn "what's next", a good one is: Any solutions without moving? - ABestWeb Affiliate Marketing Forum
    Good Luck.
    Here's what I wrote in that discussion thread (on June 30, 2009):

    Quote Originally Posted by markwelch
    I've said this a dozen times before on ABW, but here we go again:

    No, you cannot remain in an "Amazon Tax" state and continue your advertising relationships with merchants who have decided not to collect sales tax and who have decided to terminate their relationships with in-state publishers.

    No, you cannot legally use a mail-drop address in another state to trick the merchant.

    No, incorporating or registering in another state (or offshore) will not solve this problem.

    No, there is no benefit (for "Amazon Tax" purposes) in "hiring a Registered Agent and Virtual Office in Wyoming."

    The only legitimate way for web publishers to avoid the impact of the "Amazon Tax" is to physically move your household and your business completely out of the "Amazon Tax" state(s). As noted, moving to a place which has a sales tax but has not yet enacted an "Amazon Tax" isn't a wise strategy, because other states are likely to jump on the bandwagon. Moving out of the U.S. might avoid the "Amazon Tax" but many merchants don't accept non-US affiliates.

    There are five U.S. states which don't impose sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon.

    Do not play "entity games" or "address games" in order to try to avoid the impact of a state's "Amazon Tax," while remaining a resident of that state.

    The original suggestion here was "If I incorporate outside of NC... Hire someone outside of NC to run my websites.. And simply collect corporate profits as a shareholder in the corporation..." and I responded to this same idea in another discussion thread: in theory, it might work, but neither your merchants nor your state's tax agency are likely to believe you.

    Any solutions without moving? - ABestWeb Affiliate Marketing Forum
    Last edited by markwelch; March 1st, 2011 at 04:25 PM.

  6. #6
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    don't give up hope. I live in CT, and no one thought were could push back the pending Amazon Tax bill legislation....but we did.
    stick with what the PMA tells you to do. write your representatives. when its time to go to your state capital building, go and get other AZ affiliates to join you.
    one thing I learned: government officals do listen. this law doesn't help anyone -- affiliates, the states, even the retailers as business as usual will go on for all the Amazon.com's of the world.
    you don't want to go down without a fight. if affiliates in CT can beat it (I should say, push it back), affiliates everywhere can.

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