More States Introducing an Amazon/Affiliate Tax

With many states seeing large budget deficits, more and more legislators are introducing bills that include an Amazon/Affiliate Tax. A bill in New Mexico, Idaho and Maine…and Florida, Tennessee and Wisconsin could soon follow suite.

The basis of the law is this: Because big Internet sites like Amazon don’t charge sales tax. The new legislation would require affiliate sites in those states to collect sales tax on any purchase made through their affiliate links. Because Amazon (and many other sites) don’t wont collect and process sales tax in those states, the just cut all affiliates based in those states from the program.

This has already happened in New York (the first state to introduce the law), Rhode Island and North Carolina.

Again, this has no effect on SpinSix or current SpinSix clients, as we feature lead generation clients, and our ecommerce clients already collect sales tax.

States like California and Hawaii have vetoed the bill, and the work of affiliates had a major impact on that decision. Again, it’s time for the affiliates in these areas to mobilize and reach out to their local representatives to tell them the impact of this bill.