Amazon announced today that its Associates program is to be terminated in California, in response to a new sales tax bill there. The move appears to be pre-emptive hardball to try and avert the bill being signed into law.
: Gov. Jerry Brown has signed the law
Here's the text of an open letter mailed to associates:
For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by California-based marketing affiliates like you - even if those retailers have no physical presence in the state.
We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, 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, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice. As of the termination date, California 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 the termination date 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 California. If you are not currently a resident of California, 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 in the near future 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 California residents and will not affect their ability to purchase from Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com.
We have enjoyed working with you and other California-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 California residents. We are also working on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.
The Amazon Associates Team
The move follows similar shutdowns in other states, most recently Arkansas
, where similar laws have been enacted. A similar bill is under consideration in Tennessee
. California, however, is by far the largest U.S. state and represents an enormous revenue source for Amazon and associates.
Headquartered in Seattle, Wa., Amazon says it should not have to collect sales tax in states where it has no physical presence. States want a cut of sales with a local connection, however, and Amazon's associates system blurs the location of economic activity in a way that looks mighty fat to the taxman. Who is making the sale? Where does the sale occur? And so on. Amazon chief Jeff Bezos has called for federal legislation
that determines the issue once and for all.
The Cobham catalog, exposed by The Intercept, features countless pages of surveillance gadgets sold to U.S. police to spy on American citizens: tiny black boxes with a big interest in you. In the creepily bland feature lists and nerdy product names is a whisper of a dark future; perhaps darker than anyone can imagine.
This image depicts the most commonly-found stylesheet colors on the web’s top sites—Paul Hebert did an amazing amount of analysis and this is just one of the intriguing visualizations he came up with. Most of these are obvious staples, especially HTML red and blue, though it’s interesting how far the blue “cluster” is from the […]
With the cacophony of an election year ablaze with unparalleled drama being fought on the front lines of Twitter, we find ourselves slowing down and staring at it like a bad accident. The need for escapist relief is perhaps more dire than usual right now. This fall, if it’s drama you crave, but the Hillary […]
Evan Kimbrell, founder of the digital agency Sprintkick, recently released a series of online courses that feature some of the best advice we’ve come across. These courses are well worth your time, and will save you from making many typical mistakes down the line if you ever want to start your own business.With this Business […]
Handy is the most convenient solution we’ve found for booking a house cleaning at the last minute, and they do a really great job. It’s as easy as heading to the site, selecting a date and time that works for you and the number of rooms in your home. We’ve even scheduled emergency cleanings as soon as the following day. […]
With all the new amazing games and consoles out there, we still can’t help but have a soft spot for old school staples. From Super Mario to Mortal Kombat, classic games just never get old. Which is why we’re so excited to relive the nostalgia with our newest deal in the Boing Boing Shop: The Complete SNES […]