California Kills Thousands of Amazon and Overstock Affilaite Websites

California governor Jerry Brown just signed a new law that will enforce sales tax for online retail affiliates, prompting Amazon to end its affiliate program in the state. Way to go Jerry. Your state is broke and depends on collection of income tax. Now there will be no income tax to collect from the thousands of Amazon affiliates in California. And since Amazon killed the program you won’t even collect the $200 million in sales tax that you planned. Sounds like a lose-lose to me.

Talk about smart government that works for the little guy!

Amazon has already modified its operating agreement for affiliates linking to Amazon products on their sites: “if at any time following your enrollment in the Program you become a resident of California, Colorado, Illinois, North Carolina, Rhode Island, or Connecticut, you will become ineligible to participate in the Program.”

Notice North Carolina is on the list. Way to go Tarheels – Before you did this, Amazon was going to put a warehouse in NC that would have employed hundreds of people. So that worked out well for you too.

So what to do if you live in one of these states and still want to make money as an affiliate. Simple – just open an account at one of those convenience mailbox stores in another state. It will cost you about $20 month plus the postage for them to forward your mail. Just register on the Amazon Associates Program with the new address. Bingo – you are back online.

4 Comments

  1. WOW and here I thought it was wall street that caused the problems… and all the time it was the Amazon affiliates.

  2. I am trying to think of why Governor Brown would sign such legislature. I’m sure this could be easily overturned in court, be it state or federal, due to the legality of taxing anything on the internet.

  3. Fatwallet.com moved from Loves Park IL to Beloit WI because of the law changes in Illinois. Way to kick them out Illinois!! Wisconsin is smiling all the way to the bank!!

  4. To add to Skip’s suggestion, there are online mailing services as well that will give you a physical street address in your choice of many states, then forward (or scan+email) your mail to you. I’ve used one such service myself.

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