Posts
Online retail giant Amazon.com cut ties with affiliate Web sites in North Carolina and Rhode Island to avoid the latest revenue scheme gaining momentum in state capitals to force out-of-state companies to collect sales taxes on Internet purchases made in those states.
Web retailer Overstock.com also announced last week it would end affiliate arrangements in those states, as it has with 3,400 online affiliates in New York.
California Gov. Arnold Schwarzenegger got the message. After threats from both companies to end affiliate programs in California, the governor last week vetoed a package of new taxes that included online sales taxes.
Amazon had warned it “would have little choice but to end its advertising relationships with California-based participants in the Amazon ‘Associates Program,'” which pays affiliates a percentage of sales based on click-through purchases originating at their Web sites. Taxing the affiliate sales of out-of-state Web-based companies is “an unconstitutional burden on interstate commerce” when the seller has no physical presence in the state, Amazon maintained.
click here to read the full article
0 comments:
Post a Comment