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Bummer: Can't Join Amazon Associate Program

1227 Views 13 Replies 11 Participants Last post by  Hildred
  All,

  So, taking advice from fellow board members, I decided to join the Amazon Associate program and point people to Amazon with links to buy my books. I just registered for my Author Central Account and, since my dogs forced me to get up at 5 am, I thought I'd set up my Associate account--only to discover that Illinois Residents are not eligible to join.

  Total bummer.  :(

  Keith
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That's weird, since they let Australians in. Wonder why?
It has to do with good ol' taxes.

http://articles.businessinsider.com/2011-03-11/tech/30095705_1_illinois-residents-amazon-associates-program-governor-quinn

Basically, Amazon withdrew their affiliate program there after a new tax law passed in Illinois stating that they had to charge a sales tax even though they don't have a physical storefront there.
  Hildred,

  I suspected it had to do with taxes. It's frustrating, but that's life doing business in Illinois!

  Keith
Keith Strohm said:
Illinois Residents are not eligible to join.
I haven't tried personally, but a friend of mine ran into the same problem. Apparently North Carolina residents aren't eligible either.
This is all part of gamesmanship between Amazon and the various states who want Amazon to collect sales tax for them.  I think, in California, the ability to be an associate was restored after Amazon agreed to start collecting the taxes.  My co-mod Ann, who is a tax thingy of some kind, explains it better.  :D  *ducks and runs before Ann reads this.*

Betsy
Keith Strohm said:
Hildred,

I suspected it had to do with taxes. It's frustrating, but that's life doing business in Illinois!

Keith
Wait a minute. You mean to tell me that even though half of the dead people in Chicago vote at every election, live and well citizens of the fair state cannot profit from online commerce? Truth is stranger than fiction.
Cherise Kelley said:
Wait a minute. You mean to tell me that even though half of the dead people in Chicago vote at every election, live and well citizens of the fair state cannot profit from online commerce? Truth is stranger than fiction.
Yup! :) But this state is so corrupt, I fully expect a dark limo to pull up when I upload my first book and demand protection money. "Those are some great pixels, sir," a guy named Rocky will say to me. "It would be a shame if something were to happen to them!"

Keith
Same thing in Connecticut.

What it is is that if an on-line company has a physical location in the state they are supposed to collect state sales tax. Affiliates (or Associates) are considered a "physical" location so if Amazon has 1 Affiliate in the state then they have a physical location in the state and would have to collect taxes. Amazon's ability to bypass sales tax gives them a great advantage over brick & mortar stores and they don't want to give that up.
I can't join in North Carolina either. It's a big bummer!
Yep, they closed my account in Colorado after the legislation passed. This is the email they sent when I protested.

Hello Jennifer,

Thank you for contacting us about the Colorado legislation. The Colorado government recently enacted a law to impose sales tax regulations on online retailers. The regulations are burdensome and no other state has similar rules. The new regulations do not require online retailers to collect sales tax. Instead, they are clearly intended to increase the compliance burden to a point where online retailers will be induced to "voluntarily" collect Colorado sales tax -- a course we won't take.

We and many others strongly opposed this legislation, known as HB 10-1193, but it was enacted anyway. Regrettably, as a result of the new law, we decided to stop advertising through Associates based in Colorado. We plan to continue to sell to Colorado residents, however, and will advertise through other channels, including through Associates based in other states.

There is a right way for Colorado to pursue its revenue goals, but this new law is a wrong way. As we repeatedly communicated to Colorado legislators, including those who sponsored and supported the new law, we are not opposed to collecting sales tax within a constitutionally permissible system applied evenhandedly. The U.S. Supreme Court has defined what would be constitutional, and if Colorado would repeal the current law or follow the constitutional approach to collection, we would welcome the opportunity to reinstate Colorado-based Associates.

You may express your views of Colorado's new law to members of the General Assembly (http://www.leg.state.co.us/Clics/CLICS2010A/csl.nsf/directory?openframeset) and to the Governor (http://www.colorado.gov/governor).

We appreciate your understanding, and again, I am sorry that we are unable to reopen the account at this time.
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And the Supreme Court in Colorado even nullified the law.  I even wrote and asked Amazon about letting is back in, but they are gun-shy they said.  Not gonna happen because they do not trust the CO government to not try this BS again.

Amazon has no physical stores in CO.  CO wants sales tax for items that have nothing to do with CO.  They call Amazon Associates outlet stores for Amazon, even though everything is virtual.  This is called over-reaching, friends.  And this is what business does to over-reaching governments. 

And who gets screwed?  I mean, really did CO make one red cent off this?  No - they wasted a whole bunch of my tax money in order to lose this battle in court. 

I love this state - but I'll tell you what - I've been a Colorado state employee for six years and it's just as corrupt here as it is in Chicago.  The lies and cheating are disgusting.


One more reason I'm glad I live in a sales-tax-free state. Woohoo!
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