Posted on 06/18/2013 12:26:52 PM PDT by rhema
In advance of having to collect online state sales tax, Amazon said Tuesday that it will sever ties with its Minnesota-based affiliate websites that receive a fee for referring shoppers to the retail giant's online store.
The move comes less than a month after Gov. Mark Dayton signed a law requiring certain online businesses with a physical presence or affiliates in Minnesota to charge sales tax on items it sells to the state's residents. The law takes effect July 1.
"While we oppose this unconstitutional state legislation, we strongly support the federal Marketplace Fairness Act now pending before Congress," Amazon told its affiliates in an email. "Congressional legislation is the only way to create a simplified, constitutional framework to resolve interstate sales tax issues and it would allow us to re-open our Associates program to Minnesota residents."
Amazon affiliates like Twin Cities-based Carrie Rocha, who blogs about online bargains at Pocketyourdollars.com, direct shoppers to Amazon and are paid a commission on purchases made by those they refer.
Although Rocha has affiliate relationships with hundreds of retail websites, Amazon is her largest single revenue source, making up about 10 percent. Other retail websites also have ended their affiliations with Rocha, including Overstock.com.
"Amazon is the big dog," Rocha said. "But I've been fired by other online retailers already. ... I've been getting these emails since this was signed into law." Amazon also has ended affiliate relationships in other states that have passed similar laws, such as California.
The online sales taxes are not new -- they are supposed to be paid voluntarily by the consumer who buys goods online. Most consumers do not pay the tax. What's new is the law requiring the vendor, such as Amazon, to collect the tax upon purchase.
By ending the affiliate relationships, Amazon exempts itself from having to collect the tax.
I can’t dispute what you say regarding the Constitutional issues (I plead ignorance). My remarks are entirely based on time-tested principles of tax policy.
Tax policy cannot amend the constitution.
This is the use of taxes to destroy your own people ~ kind of like Assad using sarin, but in this instance they'll just move next door to Wisconsin.
BTW, in Virginia the gub’mnt pays the merchants for collecting the sales tax. Note, it is not mandatory that you sell, so it’s a voluntary act!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.