Amazon Discontinues Affiliate Program for North Carolina

Amazon has surprised many affiliates after announcing it would no longer offer its affiliate program to residents of North Carolina.

SAN FRANCISCO — Amazon.com Inc. closed accounts with its affiliates in North Carolina to avoid paying a proposed sales tax, according to media reports Friday. In an email, Amazon reportedly told marketing affiliates in the state that the move was a direct result of North Carolina’s push to levy a tax on purchases made through Amazon affiliates. (FOXBusiness.com)

A short time after the North Carolina announcement, Hawaii affiliates received the same news.

What concerns me the most is the bigger story behind this whole issue. What’s next? Could the entire affiliate marketing industry be in jeopardy if local lawmakers push to create new legislation that forces companies to pull out of offering their affiliate programs in specific states? It’s a very scary thought.

In Canada, they’ve already started taxing eBay income for both sellers and affiliates. It’s only a matter of time until they widen their focus to include all Internet-related earnings.

To me, beginning to tax businesses who do business in one’s state is hurting the economy more than helping it. People who are trying to earn a decent living end up being cut off because the government becomes greedy.

How do affiliates feel?

This will actually hurt their sales tax revenues. If I made $1,000 from affiliate programs I’d be spending the money in my home state (and thus paying sales tax on my purchases), and much of that money would continue to stay in the region as it is spent by the retailers I visit…. now that $1,000 won’t even make it into the state in the first place. – Infinitus76

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