Filed under: News
Overstock kills affiliate programs in 4 states, just like Amazon
Each of those states has either adopted or is about to adopt a law that would require online retailers with in-state affiliate partners to collect sales tax on items sold. The idea is that a web publisher who posts links Amazon, Overstock, or other web stores and gets a commission for items sold through those links is essentially giving the online store a physical presence in the state, which means state tax laws come into play.
On the one hand, states are struggling thanks to the recession, and it makes sense that some states would turn to this tax as a revenue source. On the other hand, if companies like Amazon and Overstock decide that the laws are too burdensome and just pull out of those states altogether, then nobody wins.
It's worth pointing out that you're really supposed to pay sales tax for most things purchased on the internet. But in most cases, the burden is on the shoppers, not the retailers. If enacted, these state laws would require the stores to collect the taxes which consumers pretty much never pay voluntarily.
[via The Business Insider]
















