Amazon closes affiliate program for MO residents
Bad news today related to legislation passed here in MO. I wish that Governor Nixon had not signed this legislation. Amazon has no operations in Missouri. IMHO states have no business collecting sales tax on entities (such as Amazon) that are not headquartered in nor do they have distribution centers in, the state. This money grab by the state ends up affecting consumers with higher prices on every order (more taxes) and now it affects Amazon affiliates as well 🙁
Here is the complete statement from Amazon:
Greetings from the Amazon Associates Program.
We are writing from the Amazon Associates Program to notify you that your Associates account will be closed and your Amazon Services LLC Associates Program Operating Agreement will be terminated effective August 27, 2013. This is a direct result of the unconstitutional Missouri state tax collection legislation passed by the state legislature and signed by Governor Nixon on July 5, 2013, with an effective date of August 28, 2013. As a result, we will no longer pay any advertising fees for customers referred to an Amazon Site after August 27 nor will we accept new applications for the Associates Program from Missouri residents.
Please be assured that all qualifying advertising fees earned prior to August 28, 2013 will be processed and paid in full in accordance with your regular advertising fee schedule. Based on your account closure date of August 27, 2013, any final payments will be paid by October 31, 2013.
While we oppose this unconstitutional state legislation, we strongly support the federal Marketplace Fairness Act now pending before Congress. Congressional legislation is the only way to create a simplified, constitutional framework to resolve interstate sales tax issues and it would allow us to re-open our Associates program to Missouri residents.
We thank you for being part of the Amazon Associates Program, and look forward to re-opening our program when Congress passes the Marketplace Fairness Act.
The Amazon Associates
This happened in other states too:
I’m just curious what this means for Missourians? Are they trying to tax more? Or is Amazon working for the benefit of sellers? Thanks for your time.
Thank you for your comment. My understanding is that Missouri legislators are attempting to impose sales tax on all Amazon sales to Missouri, partially on the basis that Amazon has affiliates located in Missouri. So by abandoning their affiliate program in Missouri, Amazon may be able to avoid charging their customers sales tax in Missouri.
That is what was going on as far as I can tell, but please do not consider my answer definitive!