Why Amazon Doesn’t Need To Terminate Affiliates Over Sales Tax Laws
I’ve been one of the unlucky Amazon affiliates to be dropped from the program because the state of Illinois passed a law that would require Amazon to collect taxes on all sales in the state.
The law says that the online seller must have a physical presence in the state, and Illinois considers affiliates to be a “physical presence.”
Affiliates in other states, such as California, New York, Arkansas, North Caroline, Hawaii, Colorado and others, have been dropped. Some web companies rely on Amazon’s affiliate program for a large chunk of their revenue. I know of at least one company in Illinois that relocated to Wisconsin to keep their affiliate status.
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