New Arkansas Internet Tax Law!

I actually had another topic I was going to talk about today, but as soon as I turned my computer on this morning, this is what I got from Amazon Associates:

“Hello,

For well over a decade, the Amazon Associates Program has worked with a large number of Arkansas residents. Unfortunately, a new state tax law signed by Governor Beebe compels us to terminate this program for Arkansas-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers – including but not limited to those referred by Arkansas-based affiliates like you – even if those retailers have no physical presence in the state.

We opposed this new tax law because it is unconstitutional and counterproductive. It was supported by big-box retailers that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that its enactment forces this action. The unfortunate consequences of this legislation on Arkansas residents like you were explained to the legislature, including Senate and House leadership, as well as to the Governor’s staff.

As a result of the new law, contracts with all Arkansas residents participating in the Amazon Associates Program will be terminated on July 24, 2011. Those Arkansas residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before July 24, 2011 will be processed and paid in full in accordance with the regular payment schedule.

You are receiving this email because our records indicate that you are a resident of Arkansas. If you are not currently a resident of Arkansas, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state after July 24, 2011, please contact us for reinstatement into the Amazon Associates Program.

To avoid confusion, we would like to clarify that this development will only impact our ability to continue to offer the Associates Program to Arkansas residents and will not affect their ability to purchase from www.amazon.com.

We have enjoyed working with you and other Arkansas-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to Arkansas residents.

Regards,

The Amazon Associates Team”

So in other words, all of the product links that I have on my sites will still be there, but after July 24th, I will no longer be paid for advertising fees when someone clicks on them! Lovely! Just friggin’ lovely!

So now, with a new site just in the final stages that is loaded with critical products to the topic of my ebook (not to mention all of the other sites I have that are using them), I have to spend yet more time to find suppliers and establish wholesale drop-ship relatonships with them and then change all my links… on the site and maybe in my book, too… plus all the sites and blogs that Sharon has out there, which is also loaded with Amazon product links!

There are other smaller companies out there who are already processing sales tax payments for out of state vendors, and yet Amazon, who has the bucks to be able to implement such a plan themselves, refuses to do so!

More and more states are getting on this “bandwagon” of wanting to collect sales tax originated by sales within their states, even though the products are not trnasferred or shipped within the state!  And that tactic is just plain WRONG!!!!

In other words, I could sell a product here, and have it shipped from any one of Amazon’s warehouses in any other state, or even from a third party vendor, to someplace like Oregon (that doesn’t even have a sales tax), and yet Arkansas still wants the tax for it!

This state tax is something that could even affect eBayers in Arkansas, because if they sell in this state, even if it’s drop-shipped goods supplied by out of state vendors, and even shipped to another state, it appears as they are still going to have to collect tax and submit it.

As a business, they should have a tax license anyway, even though places like Cherokee Village don’t require it because they apparently think that internet busnesses don’t generate enough money to worry about! But yet the state does! So if the state collects tax money and Cherokee Village has not licensed that business, how are they going to collect their share of the state revenue! DUH!

Anyway, we all know we can’t fight “the system” except with our votes. I know who IS NOT getting mine!!! And they shouldn’t get yours, either!

But first, I have other things to worry about… like maybe moving my “business office” to Oregon! If I have to set up a virtual office in that state and apply for a state business license there, and have my mail forwarded, then so be it! Doing that might be easier than having to replace all the product links I have out there and do away with a system that has been working perfectly for me!

Anyway, I will find out what I can about the new tax law, and keep looking for “work-arounds” that we can all use!

Let me know your thoughts!