Wednesday, October 5, 2011

Why Bloggers Should Pay Attention to the New Affiliate Tax Laws

Filed Under: Blogging for Dollars 18 Comments Tweet

This guest post is by Yasmine Mustafa of 123LinkIt.com.

The Business Insider recently reported that ten thousand affiliates were recently dropped from Amazon’s Affiliate Program with little warning.

How much income would you lose if you were no longer permitted to use the program?

This is an issue that bloggers in California, Colorado, Illinois, New York, North Carolina, Rhode Island, and Connecticut are currently facing. They were instantly cut from Amazon’s affiliate program due to a new affiliate tax law.

Update: Amazon dropped the ballot fight last week and cut a deal with California on the collection of sales tax. According to CNN Money, they have not stated whether or not they will reinstate their CA affiliates.

How did it happen? What can you do to avoid this law from passing in your state?

All about the affiliate tax law

Online retailers such as Amazon that do not have a physical presence are not required to collect sales tax like brick-and-mortar businesses. Big companies like Wal-Mart who are taxed see this as an unfair advantage and are paying lobbyists to push what is now called the

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