North Carolina begins internet tax collection - unconstitutional?

[Gerry]

Today I received this email from Amazon.

I noticed the other night when I placed an Amazon order that suddenly I was paying NC sales tax, a first for me.


We are writing from the Amazon Associates Program to notify you that your Associates account has been closed as of June 26, 2009. This is a direct result of the unconstitutional tax collection scheme expected to be passed any day now by the North Carolina state legislature (the General Assembly) and signed by the governor. As a result, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com after June 26. We were forced to take this unfortunate action in anticipation of actual enactment because of uncertainties surrounding the legislation’s effective date.

Please be assured that all qualifying referral fees earned prior to June 26, 2009 will be processed and paid in full in accordance with our regular referral fee schedule. Based on your account closure date of June 26, 2009, any final payments will be paid by September 1, 2009.

In the event that North Carolina repeals this tax collection scheme, we would certainly be happy to re-open our Associates program to North Carolina residents.

The North Carolina General Assembly’s website is http://www.ncleg.net/, and additional information may be obtained from the Performance Marketing Alliance at http://www.performancemarketingalliance.com/.

We have enjoyed working with you and other North Carolina-based participants in the Amazon Associates Program, and wish you all the best in your future.


Best Regards,

The Amazon Associates Team

 

[draggar]

I wonder how many people won't read that and keep their links, etc.. open and not collect any referral fees?

That does suck - I wonder exactly what the new law was and if other states will follow suit?

 

[Gerry]

I wonder how many people won't read that and keep their links, etc.. open and not collect any referral fees?

That does suck - I wonder exactly what the new law was and if other states will follow suit?

The law was to basically start collecting internet sales tax.

The argument against is Amazon is not an NC based business.

The argument for is I live in NC.

The argument for is NC missing out on a boatload of revenue for the tax coffers.

 

[Melly]

The government is greedy. Other states will probably follow suit.

Its sad that in life you truly never own anything or can never truly get ahead.

 

[Gerry]

New York had proposed what they call the "iPod Tax" to tax all downloaded material - games, songs, ringtones, etc - from any source, not just from iTunes.

 

[copper]

Damn.
So, this shit already being enforced or not yet?

 

[Gerry]

Damn.
So, this shit already being enforced or not yet?

Yes, it is in effect now.

I was totally unaware of this pending bill.

The NC Legislature must have really hurried this bill through to avoid any opposition.

Damn.
So, this shit already being enforced or not yet?

I was totally unaware of this pending bill.

The NC Legislature must have really hurried this bill through to avoid any opposition.

 

[Tia Wood]

That's stupid. So if I have a brick and mortar company and someone visiting from Florida comes and purchases from my store, do I owe Florida taxes? No.

 

[Arrogance]

More nonsense legislation, sad day for NC

 

[south]

The government is greedy. Other states will probably follow suit.

Its sad that in life you truly never own anything or can never truly get ahead.

http://www.dnforum.com/f77/californ...ad-360582.html?highlight=coalition_letter.pdf

 

[Gerry]

Well, for Amazon to dump all NC associates says volumes.

 

[Donald Aquilano]

I'm not surprised. It seems that all politicians are trying to pass new bills through pretty quickly nowadays especially in DC. A tax like this if enacted in other states will result in more job loses overseas which the US cannot afford. When will the political elite in this country realize that Internet businesses in most cases don't need a physical presence in the US to operate their business here. They will just move their operations overseas if taxes become to harsh for them to operate here.

 

[Raider]

The government is greedy. Other states will probably follow suit.

Greedy is when you have money, The Government is broke so their trying everyway possible to increase revenue.

Just look at California, the biggest Welfare State in the Country is BROKE, So broke they recently increased the Sales Tax and DOUBLED the Vehicle Registration fees.... Cities are installing more Traffic Cameras in intersections, Hiring more motorcycle police to issue more citations. Putting more Parking Police on the streets, Anything to raise revenue.

And now we come to the most untapped source of all; The Internet, Their finally going after it and they have to, And your exactly right that other States will follow suit, It was only a matter of time, As the recession worsens, that time is drawing more near.

 

[furca]

Crap. Time to move states.

 

[Gerry]

Crap. Time to move states.

I am about 1 hour from the Virginia line.

I wonder if a PO Box in Virginia would meet their requirements...

hmm.

 

[KaneCo]

I am about 1 hour from the Virginia line.

I wonder if a PO Box in Virginia would meet their requirements...

hmm.

I have been thinking about this in anticipation of, Georgia doing something like this, have been wondering the same thing. I may have to incorporate in Alaska or something like that.

 

[Gerry]

I have been thinking about this in anticipation of, Georgia doing something like this, have been wondering the same thing. I may have to incorporate in Alaska or something like that.

I am incorporated in Delaware.

I will have to look into this and all the angles, most importantly what the TOS of Amazon states.

Amazon has tremendous widgets and have really put much thought into building their brand.

 

[RANGER]

This has already happened in Hawaii as well.

http://online.wsj.com/article/SB124638801268074915.html?mod=googlenews_wsj

Amazon.com Inc. has informed its marketing affiliates in Hawaii that it is ending its business with them in order to avoid collecting sales tax in the state.
Following in the footsteps of North Carolina and Rhode Island, lawmakers in Hawaii have passed legislation that would require companies to collect sales tax if they have marketing affiliates in the state. Affiliate marketers run blogs or Web sites and get a sales commission by featuring links to outside e-commerce sites.
Hawaii's governor has until July 15 to potentially veto the legislation, but it has an effective date of July 1.
In an e-mail sent to Hawaii affiliates on Tuesday, Amazon said it would end its accounts with them effective June 30. "We were forced to take this unfortunate action in anticipation of actual enactment because of the uncertainty and timing of a veto, and the possibility that a veto could be overridden," Amazon wrote.
A handful of cash-strapped states have weighed laws that would use the presence of affiliate marketers to force e-commerce companies into collecting sales tax. New York passed such legislation last year, and Amazon has begun collecting sales tax there as it challenges the law in court.

 

[Gerry]

This has already happened in Hawaii as well.

http://online.wsj.com/article/SB124638801268074915.html?mod=googlenews_wsj

Amazon appears to want its associates to help in fighting the battles that Amazon fights.

 

[BobDiGiTaL]

luckily, I hardly buy from NC sellers.

It sets a bad precedent for the other states to follow.

If you want to tax us so badly, tax weed.