3 ms·

I can't seem to find a non-fluff writeup of this story, though I've found a bunch of similar versions. From my understanding of the issue, California passed a

by Woost 15y ago

I can't seem to find a non-fluff writeup of this story, though I've found a bunch of similar versions. From my understanding of the issue, California passed a law redefining "presence" in a state so as to include companies which have affiliates in that state. Businesses which have no affiliates (or advertising?) in California still would not have to collect sales tax. Amazon was not too happy with this situation, so they cut all of their affiliates in Cali, and proceeded to get into politics. They agreed to reinstate/not proceed with cutting their affiliates (I'm not sure if they actually cut or just threatened) in exchange for a year long delay in collecting sales tax.

mhartl 15y ago
I'm not sure if they actually cut or just threatened They cut the program. Before the California State Government (CSG) passed the Amazon Tax, I was making over $1000/month in Amazon affiliate commissions, which blew up on two days' notice. My account currently says "This account is closed and will not generate referrals. Access to this site is for historical purposes only." I've not yet seen any sign of the account being reinstated, and I don't anticipate ever being compensated for the income lost while the situation was in limbo. Will the affiliate program for California residents eventually be restored? Perhaps, but I wouldn't count on it, and God only knows what CSG will do next. I'm currently in the process of moving my legal residence to Nevada, just in case.
- Woost 15y ago
  So it's worse than I thought. How does California justify collecting sales tax from Amazon if Amazon has no affiliate network there, no advertising there, and no real presence?
  - mhartl 15y ago
    According to the LA Times, they're going to restore the affiliate program. But I already have one foot in Nevada, so I think it's too late. How does California justify collecting sales tax from Amazon if Amazon has no affiliate network there, no advertising there, and no real presence? It doesn't. Amazon avoids an expensive legal battle in exchange for collecting sales tax. It's your garden-variety extortion, writ large.

by Woost 15y ago

mhartl 15y ago

I'm not sure if they actually cut or just threatened They cut the program. Before the California State Government (CSG) passed the Amazon Tax, I was making over $1000/month in Amazon affiliate commissions, which blew up on two days' notice. My account currently says "This account is closed and will not generate referrals. Access to this site is for historical purposes only." I've not yet seen any sign of the account being reinstated, and I don't anticipate ever being compensated for the income lost while the situation was in limbo. Will the affiliate program for California residents eventually be restored? Perhaps, but I wouldn't count on it, and God only knows what CSG will do next. I'm currently in the process of moving my legal residence to Nevada, just in case.

Woost 15y ago
So it's worse than I thought. How does California justify collecting sales tax from Amazon if Amazon has no affiliate network there, no advertising there, and no real presence?
- mhartl 15y ago
  According to the LA Times, they're going to restore the affiliate program. But I already have one foot in Nevada, so I think it's too late. How does California justify collecting sales tax from Amazon if Amazon has no affiliate network there, no advertising there, and no real presence? It doesn't. Amazon avoids an expensive legal battle in exchange for collecting sales tax. It's your garden-variety extortion, writ large.