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:
[begin quote]
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.
Sincerely,
The Amazon Associates
[end quote]
This happened in other states too:
http://www.the-digital-reader.com/2011/03/12/amazon-cut-ties-with-ill-affiliates/#.UgxB7JLVA8Q
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.
Hi Brandy,
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!
Best regards,
-J.D.
J.D.,
Thank you for the explanation. When that legislation was kind of pushed through I kind of wondered if that wasn’t the case. Sounded like trying to double tax to me when I read about it and I just don’t understand how that could be legal.
Used to a person would have to make a certain amount to even pay taxes. So I fail to see how forcing them to pay taxes without taking income level into consideration could even be legal. Anyway just my thoughts on it.
I did notice that taxes in Missouri went up a lot during this time for online sales and most people just went to sites like Facebook where they can avoid that. I know some other states just include tax into the prices even when you get groceries at the store so it isn’t a separate charge. I met some of them in my days as a cashier and they preferred it that way and didn’t like being ‘taxed’ what they felt was a lot extra. Prices here in Mo on certain items can be way more then someone might pay online through another state. That is just driving business outside the state really. I don’t see where it helps normal folks.
I was just looking into the Amazon Associates program because I felt it might something interesting worth looking into. I couldn’t even get information about it because Missouri isn’t accepted. I wrote Amazon to find out why and got something similar to what you got so I was curious. There are other ways to go about starting up. It’s not just Jay (he’s done stuff I liked and stuff I didn’t) either I’m starting to wonder if anyone really reads legislation before they sign it anymore. Anyways thanks again. I hope it all gets sorted out soon so that people know what they’re suppose to do. I don’t think someone who went to a store and bought a second hand book should then have to charge tax on it when they resell it again. Tax was already paid on it. To pay again is double tax. And it’s double tax on an item that is far less of quality then the item was to begin with.