Really, you think you can fight the state’s legislature?
For years we have been getting away with not having to pay sales tax on items purchased online.
I know I’ve enjoyed it. Sales tax can add up and not having to pay it is like getting a discount.
Well, now states, like mine, are attempting to put an end to this by enacting a ‘Nexus’ tax. This law basically charges online retailers for taxes when items have been sold by their representatives (aka affiliates) living within their state. My state is close to broke and really needs the money generated from these taxes. To the dismay and anger of many online retailers, my state enacted this law faster than a politician leaving town on a vacation. My state went so far as to ask us to pay back sales taxes on items we purchased last year (minimum $1- who remembers this stuff?). Actually, if you don’t live in a state with 365 day a year sunshine+tourism, your state is probably thinking about this tax too.
Amazon led the way for pay-back by dumping all affiliates in my state. They still sell to us, ironically. Now, getting one of these emails is nothing new:
Several states have passed a law that specifically imposes the collection of taxes from consumers on sales even if those retailers have no physical presence in the state. These states are Arkansas, Illinois, Rhode Island and North Carolina. California is expected to join this list tomorrow, July 1st. The purpose of this legislation is to force out-of-state retailers to collect and remit sales tax to these states. Its mechanism is to claim that affiliates represent a presence, or physical nexus, in the state. We believe that legislation like this is unconstitutional, as affiliate marketing is a form of advertising, which has been deemed to not be nexus by the Supreme Court. However, while this legislation goes through the courts for a decision on the matter, which may take many months, we are forced to make a decision for our programs in the short-term.
We have come to the difficult conclusion that while this law is in effect, we must terminate our relationship with affiliates based in Arkansas, Illinois, Rhode Island, North Carolina and California. Our records indicate that your business is based in one of these affected states. If you are not currently a resident of one of these states, or if you are relocating to another state in the near future, please contact us immediately…………..
As much as I wish the businesses had a chance to affect the states by pulling affiliates, I think they are cutting off their noses to spite their faces. More states will be jumping on this bandwagon of sales tax- they would be stupid not to if they want to keep their kids reading in schools and their roads drivable. The reality is that the states will win this battle and in the long run, the businesses will lose business. The money that you are losing is not worth the 6%, or whatever, sales tax. Just this week retailers fighting back lost some 25,000 affiliates in California. Is it worth it?
Saturday 9: Take Me Back
1. Think of all your exes. Would you take any of them back?
Just Paul (Newman) but, he’s dead…….
2. If anyone came to your house on your “lazy days” what would you be wearing?
Dude…every day is a “lazy day”
3. What’s your favorite shirt?
One of those old white cotton t-shirts that I wear when I run and it’s seriously hot out.
4. Have you ever been on your school’s track team?
Only as the carrot.
5. Do you own a pair of Converse?
I’m like over 12 thank you
6. Where are you at right now?
7. Do you eat raw cookie dough?
No. It’s more fun to eat warm, underdone cookies from the oven.
8. Don’t you hate when the radio ruins good songs by playing them over and over?
Not as much as commercials like the “Sunday,Sunday,Sunday” screaming ones or the ones with politicians.
9. Do you watch the news?
Yep. And it watches me. Cool aye?
Thanks so much for joining us again at Saturday: 9. As always, feel free to come back, see who has participated and comment on their posts. In fact sometimes, if you want to read & comment on everyone’s responses, you might want to check back again tomorrow. But it is not a rule. We haven’t any rules here. Join us on next Saturday for another version of Saturday: 9, “Just A Silly Meme on a Saturday!” Enjoy your weekend!