Amazon.com

Hackney not bothered by Amazon

bniolet — Mon, 06 Jul 2009 11:44:13 -0400

House Speaker Joe Hackney isn't too worried about Amazon.com's objections to a proposal that would have required the company to collect sales tax within the state.

Mark Binker, Dome's colleague at the Greensboro News & Record, reports that Hackney is not paying attention to Amazon's decision to end within the state a program that paid Web site owners for referring customers to Amazon.com products.

"Amazon has a history of acting that way. I think they did that in New York and then they backed off and reversed themselves so I’m not sure we should take that too seriously. I have my own way of dealing with it, which is I just won’t deal with Amazon," Hackney told Binker.

Presumably, Hackney will not be purchasing a Kindle soon.

Berger gets on Wall Street

bniolet — Thu, 02 Jul 2009 11:11:31 -0400

Senate minority leader Phil Berger had a letter published in the Wall Street Journal in which he blasted proposals to levy sales tax on Internet sales.

The Eden Republican said Amazon.com's decision to end a commission program for referrals to its online products proves that his party is right about new taxes.

Actions have consequences. Amazon.com's decision to pull out of our state proves the point North Carolina Republicans have been making for months: Raising taxes on small businesses destroys North Carolina's jobs, slows our economic recovery, and makes us uncompetitive with other states.
Like their brethren who control the federal government, North Carolina Democrats have an unquenchable thirst for wasteful spending. Unlike their colleagues at the federal level, North Carolina Democrats, lacking the ability to print money, have resorted to a job-destroying billion-dollar tax increase to balance the budget.

Overstock follows Amazon's tax move

bniolet — Thu, 02 Jul 2009 09:45:00 -0400

Online retailer Overstock.com has followed Amazon.com's decision to cut off a commission program to North Carolina-based Web sites.

The move would allow the companies to avoid having to collect sales tax on sales to customers in the state. Under the commission programs, the .coms pay a percentage to Web sites that steer buyers to the online product.

The proposal would use the commission arrangement to justify levying sales tax on Internet purchases. Current state law already requires North Carolinians to pay such a tax, but taxpayers have to report themselves. Few do.

The tax proposal would treat online retailers as if they operated a brick-and-mortar store in the state.

Overstock has also cancelled its affiliate programs in Hawaii and Rhode Island, which are considering similar programs. It reinstated the program in California after Gov. Arnold Schwarzenegger vetoed a similar proposal.

"It's painful to have to terminate these relationships with affiliates, simply because they live in states where counterproductive (and likely unconstitutional) laws are being passed," said Patrick Byrne, Chairman and Chief Executive Officer of Overstock.com in a news release. "However, politicians have to remember that a tax is a price that government charges for a service, and when they raise their prices, we're going to buy less of their services."

The commissions can prove lucrative for Web site owners, some of whom live off the money.

Lawmakers who support the proposal say it's only fair to require online retailers who makes sales in the state to collect sales tax.

Hat tip: Dzone

Amazon cuts off commissions

bniolet — Fri, 26 Jun 2009 09:11:03 -0400

Amazon.com cut off state residents today from a commission program that rewards Web sites for linking to the online retailer's products.

The move was surely designed to raise the pressure on lawmakers, who are considering using the commission arrangement to justify levying sales tax on sales Amazon makes to North Carolina residents.

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.

The commission program provides some Web site owners with a little extra spending money. For Rick Owings and his wife, the program accounted for two-thirds of his income, or more than $70,000 a year.

"There's not enough left to make a mortgage payment," said Owings who runs his Web site, GPSTracklog.com, from Asheville. "Unless the legislature changes this, we're moving out of state. We're taking our business and all the income tax we're paying with us."

Owings' site provides reviews and resources for people interested in buying GPS devices. Like many similar review sites, product descriptions include plenty of links for where to buy online.

It's unclear how many North Carolinians participate in the program because Amazon.com doesn't discuss specifics about its Associates program.

More after the jump.

'Click' tax prompts Amazon warning

bniolet — Wed, 17 Jun 2009 17:21:32 -0400

A proposed Internet "clicks" provision in the new sales tax proposal has prompted Amazon.com to threaten to cut off state residents from commissions for referrals to the online retailer.

Amazon.com's program pays a commission of up to 15 percent for online referrals. The House budget bill uses those arrangements to require out-of-state retailers such as Amazon.com to collect sales tax on all North Carolina sales.

The sales tax would prompt Amazon.com to end commissions within the state, according to an e-mail sent to participants of the program.

We regret to inform you that the North Carolina state legislature (the General Assembly) appears ready to enact an unconstitutional tax collection scheme that would leave Amazon.com little choice but to end its relationships with North Carolina-based Associates.

"In a world where we're living through the worst recession in our lifetimes, I don't think this is the right time to do anything that would rock the boat and upset the already tenuous position of North Carolina businesses," said Rick Ross, president of DZone, which runs community sites for Web developers.

Ross, a Cary resident, said his site reviews tech books and probably earns $200 a month for referrals to Amazon. Other sites get more income from the referrals, he said.

Correction: Earlier version of the post misstated the tax provision.

Update: An Amazon.com spokeswoman said the state was relying on an incorrect interpretation of the U.S. Constitution to levy sales tax on the company.

More after the jump.