If you’re an internet marketer and you’re in North Carolina, you’ve probably heard the news already. NC is getting ready to pass a bill which, as Amazon puts it, an illegal tax collection scheme. What it basically means is that we who are in North Carolina who used to earn some income from affiliates like Amazon are out of the affiliate business because NC has decided to tax businesses like Amazon for doing business in their state. Apparently, Hawaii and New York also has similar laws and other states are following suite. California, for instance, has been mentioned to be considering this scheme to get itself out of the financial trouble its in.
This legislation does not only impact affiliate marketers like Amazon, however. This affects any company who has affiliates in NC. North Carolinians may also be facing higher insurance rates soon as some insurance companies will also fall into this category.
In the meantime, little guys like me are out of business and losing money. If you notice, most of my Amazon affiliate links on this blog and other blogs have been removed. That’s because Amazon sent me a letter a week ago saying that my account with them has been closed because of this pending legislation.
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.
The Amazon Associates Team
Help us out here in North Carolina by signing the petition Internet Marketers Against the NC Affiliate Tax.