Saturday, July 2, 2011

More on Amazon Affiliates

I know I've posted on this, but I'm still bothered by the Democrat budget in California, which imposes taxes on online sales from the state, also known as the "Amazon tax," since one of the biggest companies affected is Amazon.com. One of the things I miss about being an affiliate, is that whenever I mentioned a book --- which is pretty often --- I would link to Amazon's associate's link and I could earn a referral commission. That's not an option any more. So now it seems weird linking books knowing that a referral fee could be earned --- and an earning opportunity lost. Anyway, Robert Stacy McCain wrote about his referral success. Every now and then a reader will buy an expensive product through a referral link and that sends a large commission to the blogger. Some time back a reader bought an $800 bunk bed through my links, and I received a hefty commission for the purchase. That was nice. And Robert writes on those as well:
Somebody got a sweet deal — only $499! — on that piece of high-end home video equipment via one of the Amazon links here, which earned me a sweet $20 commission through the Amazon Associates program.
And Robert shares this video of Jeff Bezos:

Meanwhile, I rarely link him but I'll break my rule to send readers to Little Green Footballs for some lulz. Charles Johnson is perterbed by Amazon's decision to pull out of the state, but not so much that Democrat tax hikes are destroying free enterprise in California.

Typical. Charles Johnson's a bleeding-heart progressive with psychological problems. No surprise he'd back big government over business.

Anyway, Common Sense Political Thought has an entry, "Amazon.com going Galt Updated, Saturday morning."

And at Los Angeles Times, "Amazon, California play waiting game in sales tax fight":
Amazon.com Inc. is sticking by its vow not to collect California sales tax on Internet purchases — and state officials must decide what to do about it.

But the showdown over the new tax collection law that took effect Friday could be months away. Companies don't send the taxes to the state until the end of each quarter, which means the California Board of Equalization won't know officially about Amazon's refusal to collect them until Oct. 1.

The tax-collecting agency said Amazon accounts for about half the Internet sales in California from large out-of-state firms that, prior to the new law, did not have to collect sales tax for the state. It said the new law would capture about $317 million a year in sales taxes that previously went uncollected.

Amazon, based in Seattle, has said repeatedly that it would not collect the California sales tax, calling it an unconstitutional infringement on interstate commerce.

Such defiance sets up a major legal battle by this fall, though Amazon could first challenge the law in court, as it has in New York. It has lost a trial court ruling there and has an appeal pending.

Amazon is "going to fight in every state where it can fight," said Tracey G. Sellers, managing director of the Tampa, Fla., office of tax firm True Partners Consulting. "It's going to be years before this whole issue is settled" in the courts.

Amazon declined to say whether it would sue to overturn the new California statute, though state officials expect a lawsuit.
More at that link above, but California officials are looking to novel ways at making this unconstitutional law work:
The new law also gives the Board of Equalization the authority to develop new theories that would establish a nexus or legal connection, making Amazon liable for collecting California sales taxes.

"This swings the gate wide open to establish nexus as we see fit," said Betty Yee, a board member who spearheaded the agency's support for the law. But she acknowledged that any other theories the board devises would probably be tested in court.
As wee see fit? Gotcha.

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