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The muddy waters surrounding ecommerce and state sales taxes has prompted Amazon to end its affiliate program in Illinois. The move is in response to Illinois passing a new law requiring ecommerce companies to collect sales tax in the state, even if there isn't a physical presence there, like a shipping warehouse or headquarters.
According to Business Insider, Amazon sent a letter to its Illinois affiliates letting them know that it's pulling out. The letter, which you can read in its entirety here, calls out Illinois Governor Quinn for signing the new law that "specifically imposes the collection of taxes from consumers on sales by online retailers -- including but not limited to those referred by Illinois-based affiliates like you -- even if those retailers have no physical presence in the state."
Illinois is just one of many states that Amazon has pulled out or ended affiliate ties with due to a tax dispute. Other states include Colorado, Hawaii, New York, North Carolina, Rhode Island, and Texas.
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Lipman42
March 14, 2011 at 1:35pm
Even the out going Blago Gov said that this gov would increase taxes. First this gov almost doubles the States Income tax while a lot of people are not getting raises or even getting paycuts dues to the economy and now this (which they also want people to pay retro for the last few years) tax.
He even said he was going to be increasing taxes but I guess the Dems in Cook County (Chicago) didn't believe him or thought he was kidding. I can't believe I live in a state with so many stupid people!
JohnP
March 13, 2011 at 11:12am
The funny thing is that no one mentions the PHONE. Remember when we used to call our orders in and a person would answer and take down the info and mail us the stuff? Is THAT covered under this ecommerce bill or should we start breaking out the POST again?
ShyLinuxGuy
March 11, 2011 at 7:22pm
Those legislators who think that "use tax" will be filed faithfully are wrong. First of all, tax should only really be paid if the company has a presence in the state. The companies should collect the tax, in that case. If a company doesn't have a presence in the state (example: Newegg doesn't in Washington), the buyer who lives where Newegg isn't should pay no tax. This is what makes online sales attractive (everything can be bought cheaper online, even cars) and we wouldn't want to plug that up with taxes. In the end, it helps more than it hurts to only charge tax on products shipped by the company who is in the same state (that taxes sales) as the buyer. Charge tax on something from another state (that isn't even yours) and online sales won't be so attractive.
qhoa1385
March 11, 2011 at 2:46pm
and we split off of England because of excessive taxation...
look at our government now, more tax than anywhere in the world (exaggeration)
ok some might be good tax but it's getting too far
igoka
March 12, 2011 at 2:34am
There is no such thing as good tax. The more they get the more they want and it's never enough.
bbarker3
March 11, 2011 at 1:12pm
This is crap. I live in Ohio and thankfully do not have to deal with this sort of thing. I purchase from Amazon...a lot, and would be disappointed if I had to start paying sales tax for purchases through them. The states that demand the sales tax when there are no affiliations in the state itself is ridiculous. That would be the same as if I bought an item, let's say a 52" Sony Bravia from Indiana and payed the Indiana sales tax, then had to pay Ohio the same sales tax since I brought it into Ohio. Dumb Dumb Dumb.
mesiah
March 11, 2011 at 3:52pm
As an Ohio resident who files my own taxes every year, ohio requires you to report any out of state purchases with which you did not pay sales tax. It is a requirement on all versions of the tax forms. Ohio then dings you for all of those purchases as if you bought them in state. I think the practice should be illegal and most people don't bother to claim these purchases. So, it is a requirement, its just that they expect the individual to be honest instead of putting the burden on the companies making the sales.
ceator3571
March 11, 2011 at 11:51am
"I assume that now, as an Illinois resident, I will be taxed on Amazon purchases?"
I also want to know for sure on this.
someone87
March 11, 2011 at 11:00am
It's not greed, it's not evil, it's business.
Why would I have a distrabution site where I have to charge the customer tax to cover the tax I pay to the state?
Just saying, it's just business.
-Andrew
thunderclap82
March 11, 2011 at 10:41am
I assume that now, as an Illinois resident, I will be taxed on Amazon purchases?
chart2006
March 11, 2011 at 10:34am
Because living in illinois isn't getting harder now the state has to do this to us. I can't wiat until I find a job elsewhere. When I did my taxes this year there was a section for all out of state purchases. Not only was I to pay the sales tax from the state in which I purchsed the item but am also to pay sales taxes to Illinois for bringing it back with me. Can we say double dipping? I thought this was illegal?!
