For the past month, I’ve been trying to find evidence of any benefits earned by states which have enacted an Advertising-Nexus Tax Law (“Amazon Tax”). Even after appealing for help from many sources, I’ve failed to identify any benefit. Except for New York, no states have collected any additional sales taxes due to these laws, which have reduced the states’ income-tax revenue and jobs.
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As expected, Amazon.com yesterday terminated its advertising relationship with 25,000 California web publishers, including me, after Gov. Brown signed an “Advertising-Nexus Tax Law,” which would use advertising relationships as a “hook” to try to force Amazon and other out-of-state retailers to collect California Sales Tax. I’ve posted separately about this on my separate blog for LessonIndex.com: http://blog.lessonindex.com/2011/06/california-forced-amazon-to-stop-advertising-here/
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Illinois enacted an “Advertising-Nexus” tax law yesterday, triggering some serious negative consequences — while collecting no additional sales taxes. Here’s a quick summary of the law’s impact:
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One of the “Advertising Nexus” tax bills (pending in the California legislature) is scheduled for hearing tomorrow (Monday) in Sacramento. Yesterday, I found this editorial on the American Booksellers’ web site, and was annoyed enough to write this reply: Read more »
It now appears almost certain that North Carolina will become the third state (after New York and Rhode Island) to enact a blatantly unconstitutional “Advertising-Nexus” law, attempting to force out-of-state merchants to collect sales tax if they pay in-state web publishers for advertising. Although Amazon responded to New York’s secret, retroactive enactment of the law in 2008 by collecting sales taxes from New York residents, the laws are having perverse effects in Rhode Island and North Carolina. Read more »
Okay, I’m going to leap out on a ledge and suggest something that none of us (in the “affiliate marketing” community) like: Merchants should seriously consider adopting the “New York Solution” for all of their web publishers, whether located in an “Advertising-Nexus” state or not. Read more »
California is considering a bill which would effectively terminate advertising by out-of-state merchants on web publications owned by Californians. Read more »
What should we (web publishers, merchants, and others in the affiliate-marketing industry) call the unconstitutional law which NY enacted (and which RI, NC, HI, CA, TN, CT, and MN are considering)? Read more »