Amazon Shuts Down their Affiliate Program in Connecticut

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Post 3+ Months Ago

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Similar to a move made in Illinois a few months ago, Amazon has shut down its Associates program in Connecticut after the state imposed a sales tax measure that would tax any purchases made online starting July 1.


Quote:
As you may know, the program allows website owners to earn money from advertising and linking to Amazon product on their sites. Connecticut has not been able to collect local sales tax on online purchases because these online retailers don’t have an actual brick and mortar presence in the state. But states like Illinois and Connecticut are maintaining that large e-commerce sites like Amazon and Overstock.com, who both run affiliate programs, have a presence because of these local affiliates.


http://techcrunch.com/2011/06/10/amazon ... sales-tax/

Here is the full e-mail as it was sent out from Amazon:

Quote:
Hello,
For well over a decade, the Amazon Associates Program has worked with thousands of Connecticut residents. Unfortunately, the budget signed by Governor Malloy contains a sales tax provision that compels us to terminate this program for Connecticut-based participants effective immediately. It specifically imposes the collection of taxes from consumers on sales by online retailers – including but not limited to those referred by Connecticut-based affiliates like you – even if those retailers have no physical presence in the state.

We opposed this new tax law because it is unconstitutional and counterproductive. It was supported by big-box retailers, most of which are based outside Connecticut, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.

As a result of the new law, contracts with all Connecticut residents participating in the Amazon Associates Program will be terminated today, June 10, 2011. Those Connecticut residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before today, June 10, 2011, will be processed and paid in full in accordance with the regular payment schedule.

You are receiving this email because our records indicate that you are a resident of Connecticut. If you are not currently a resident of Connecticut, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state after June 10, 2011, please contact us for reinstatement into the Amazon Associates Program.

To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to Connecticut residents and will not affect their ability to purchase from http://www.amazon.com.

We have enjoyed working with you and other Connecticut-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to Connecticut residents.

Regards,

The Amazon Associates Team


Overstock also left Connecticut for the same reasons. Amazon has also done the same in Hawaii, Colorado, North Carolina, and Illinois for similar reasons.
  • Don2007
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Post 3+ Months Ago

Reading that reminded me of the story Peter Faulk told once. Before he was an actor, he worked for the state of Connecticut. He found a way to charge boat owners for a "use tax" that was on the books. Connecticut must be cursed or something.
  • camperjohn
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Post 3+ Months Ago

Amazon now shuts down California too.

Thank you governer Brown.

http://www.consumeraffairs.com/news04/2 ... sales.html
  • beckypryan
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Post 3+ Months Ago

Bogus...
I am in NC and am not suppose to market Amazon so I use another person. I want to get the commissions...
Do others work around it?
  • tomerh
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Post 3+ Months Ago

My god i hope this doesn't go in a domino effect....My life depends upon amazon..
  • floyd84s
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Post 3+ Months Ago

Amazon now shuts down California too.
  • erikko
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Post 3+ Months Ago

I still don't get it why they shut down their affiliate programs in different states.
  • AdamC
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Post 3+ Months Ago

Amazon is also making people fill out W9s for for 50 or more sales. I make so little as it is with Amazon and now this.

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