Will The “Amazon Tax” Hurt Affiliate Marketing?

By AffiliatesCenterBlog On July 15, 2011 Under Make Money With Affiliate Marketing

So will the “Amazon Tax” issue hurt affiliate marketing? Is it the end of affiliate marketing as we know it today? These are some of the questions people are asking after the landmark decision in California recently which now requires sales tax to be collected from purchases online. It’s certainly raised the ire of many in the affiliate marketing industry not the least Amazon themselves.

But the truth is, are you really surprised? Come on, it was only a matter of time before it “reared it’s ugly head”. Offline retailers have been crying foul for a while now and wanted to know why their online cousins aren’t collecting sales tax. Fair question. And with the state of the economy in the US right now, states such as California which is on its knees financially, are going to look at ways to buffer their bottom line.

So does it really surprise you that it’s going on right now? California was a significant decision because it’s the most heavily populated state in the country. Here’s a report at highervisibility.com which looks at whether the “Amazon tax” will end affiliate programs.

Those opposed to the tax say there are provisions in place for states to get their tax revenue. Customers are supposed to report Internet purchases on their tax returns. The problem is, they usually don’t.

Now other states are considering the “Amazon” tax. Tennessee consider and then retracted their proposal after Amazon threatened to stop construction of new centers that is bringing hundreds of jobs to the eastern part of the state. However, Amazon doesn’t have that kind of leverage in all states so other states may get the law passed.

Of course, Amazon is not the only affiliate marketing program out there. Thousands of small businesses use affiliate marketing to sell their products and services. If you are one of those businesses or if you are and affiliate marketer yourself, here are some things you need to do to prepare:

* If there have been no news articles about an Internet sales tax in your area, contact your local legislator to see if one is being considered.

* Consider lobbying your legislator if you are opposed to the tax.

* If you are in one of the affected states, make sure you are complying with the regulations. You could face penalties and fines for not doing so…..

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Do you think the sales tax is going to ruin affiliate marketing? Are you prepared in case your state is affected? Please leave your thoughts and comments as we always appreciate them.

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