Rather than pay a new tax, Amazon severs relationships with Illinois-based "Associates."
Roger Ebert is free to tweet about Levi's corduroy pants after April 15, but Amazon will no longer pay him if someone buys a pair.
"Amazon will terminate my Associates account on 4/15, in order to evade fair and just Illinois taxes. I have 20 more days to make a fortune," wrote the film critic on his @EbertChicago account yesterday.
A new Illinois law made official Thursday requires Web retailers like Amazon that have affiliates in the state to collect sales tax - reported to be 6.25 percent - on purchases made by people living in Illinois. Rather than pay the tax, Amazon is severing relationships with its Illinois-based affiliate program "Associates."
In an e-mail sent by the Amazon Associates Team to the company's Illinois affiliates which was posted on the LittleTechGirl.com site yesterday, Amazon said it opposed the law before it was passed.
The company told associates, "Unfortunately, a new state tax law signed by [Illinois Governor Pat Quinn] compels us to terminate this program for Illinois-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by Illinois-based affiliates like you - even if those retailers have no physical presence in the state."
Ebert told ClickZ News in a Q&A in January that he uses his Amazon Associates program commissions "to defray the cost of content on my site." He went on to state that he makes around 7 percent on each Amazon sale originating from his affiliate links. "I hope my Amazon links are often useful or amusing," he said.
Whether or not his latest Amazon affiliate tweet, posted this morning, could be considered useful or amusing is arguable: "Levi's corduroy pants, all sizes and colors, on sale."
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Kate Kaye was Managing Editor at ClickZ News until October 2012. As a daily reporter and editor for the original news source, she covered beats including digital political campaigns and government regulation of the online ad industry. Kate is the author of Campaign '08: A Turning Point for Digital Media, the only book focused on the paid digital media efforts of the 2008 presidential campaigns. Kate created ClickZ's Politics & Advocacy section, and is the primary contributor to the one-of-a-kind section. She began reporting on the interactive ad industry in 1999 and has spoken at several events and in interviews for television, radio, print, and digital media outlets. You can follow Kate on Twitter at @LowbrowKate.
Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
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