Amazon Tax Law in your State?
Last Update: August 20, 2012

I live in the State of Georgia in the USA - and apparently, the powers that be have passed an "Amazon Tax" law that would require Amazon (and other online retailers) to collect sales tax on sales that start with my Georgia-based affiliate link and lead to a sale by a Georgia consumer.

This whole Nexus Tax stuff is confusing... and a mess... and the State of Georgia's "solution" is horribly flawed.

I just posted a long and detailed post on my blog about this situation explaining what this Nexus tax is, who really cares about it, who wins, who loses, and more over on my blog.

If you're interested, you can read it here:

http://www.potpiegirl.com/2012/08/affiliate-nexus-tax-law-coming-to-georgia/

Thanks!

Jennifer
~PotPieGirl
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@RICH. Premium
Hi Jennifer.

Here in the UK, we have Google only paying tax of $10m on $600m by funnelling their money to Bermuda (via Ireland) whilst Amazon enjoy a 20% margin over competitors here because they have sufficient volume to route UK deliveries via the Channel Islands so avoiding Value Added Tax (VAT).

Vodafone has yet again somehow managed to avoid last year's UK tax bill, which was in excess of $1bn and one of our biggest retailers pays barely any tax at all as the chairman's wife owns the company and she lives in Monaco. It seems practically every government is satisfied with chasing tiny minnows whilst choosing to ignore the great big sharks.

I was wondering if it would be possible to use a factoring service outside of Georgia or if someone was generating sufficient earnings would it be worth considering incorporating themselves in another State?

Best.

Rich.
GaiC Premium
Well you know that you are big when they starting a tax just for you! the question i would ponder is, Is this just a test for a stream on ongoing new taxes. Sorry to Jen that you have another IM obstacle going your way
kyle Premium Plus
Nothing really surprises me when it comes to something that would seem so logical. No ability to earn money from a program like Amazon associates, no longer a large revenue stream for the state to tax, less money being put into the economy, and even better...a lot of the larger affiliates will move to a state in which they can still promote Amazon.

Sorry to hear they are coming down on Georgia and I hope they decide to think through their decision making in a sensible way.
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