I’m sure companies will be asking for some sort of proof of where the affiliates reside. If a company has affiliates physically located in states where tax is to be collected and they do not collect it would be considered tax fraud and the company would be subject to fines and penalites. I doubt companies would take that risk.

Washington passed a law this year, effective July 26, that all digital products purchased and downloaded by residents of the state are subject to Washington state sales tax. How that will work, I have no idea.

I will look into the site you recommended to look for answers Jake! Thanks ever so much!

In a letter from a Senator (Daniel Clodfelter), it seems clear that this is going to be an uphill battle still!

“This (law) was not recommended by Revenue Laws Study Committee as a
revenue-raising measure and doesn’t depend on raising any particular
amount of revenue. It was recommended as a matter of equitable
taxation. The United States Supreme Court has clearly held that a
company that pays commissions to agents in a state to refer business to
it has taxable presence in the state and is subject the requirement that
it collect and remit sales tax on sales made into the state. This is
not new law. The form of solicitation; the identity of the agents; the
method of payment is not material. Many online retailers currently
collect and remit sales tax on sales made and delivered into North
Carolina. They compete with companies such as Amazon, as do retailers
with physical locations in the state. It is Amazon’s choice (and every
other company’s choice) whether or not to retain commission agents in
this state or any other. But if they do so, then they must play by the
same rules as do other similarly situated sellers. The tax system
should not intentionally favor one group of competitors over another
group of competitors by differential application. They sell the same
products to the same buyers.
Some have said that online retailers should be exempt from
collecting the sales tax from NC residents because they don’t place any
burden on the state. But their products are delivered to NC buyers using
the same road and highway network created and maintained by the state
government; they use the state’s court’s to collect monies owed to them
and enforce their contracts; the packaging in which their products are
shipped must be disposed of in public landfills; and so on.
So, again, it isn’t about getting more revenue. It is about
equitable treatment of all sellers of the same products to NC buyers.”

I am checking on the legality of what he says, but if what he writes is true, every state in our country will be trying to pass this measure and it isn’t good news for anyone here!

At one point I realized that I needed a new address for my online business that was separate from my personal work-at-home address. For example, for my email newsletter (to comply with anti-spam laws) and for press releases and other publicity events. So, I started spending $25/month for a real PO box that I, in reality, never actually received mail to (but would check every few weeks, just in case).

It occurred to me that in this day and age there’s just GOT to be some kind of online mail receiving/handling/scanning/forwarding service that would deal with with my (rare) physical mail, for a cheaper price. Sure enough, I found and ended up settling in with EarthClassMail.com .

If you cruise on over to their site you can probably get answers to many of your questions, but you (or anyone else reading this) are welcome to contact me privately with Qs if you wish. Just click on my name up above to visit one of my sites, then click the “Contact Us” link in the footer to shoot me an email.

-Jake

I don’t understand: “For business reasons I have an online PO box with a service that gives me an address in my choice of a variety of US states, whether a PO box itself, or a street address.”

How does one go about getting an online PO box? A ‘how to’ would be great to know! How might one contact you to get more information? Thanks!

All I know, is that this sucks! The other part of what sucks about all of this for NC affiliates, is that we were all caught with our pants down. No one knew that this was included in the budget until Amazon sent us letters saying that our account might be in jeopardy, which was around the second week of June. We had only two weeks to fight this issue but have been given a bit more time because of the extension lawmakers needed in our state to pass a budget they agreed on.

You’re a wonder. I can’t believe I didn’t think of that – knowing a number of Canadian affiliates who use Nevada addresses to avoid paying taxes in Canada (not something I agree with considering they benefit from our exceptional social services without paying into them)… but if it means the difference between being able to operate your business or not — then it’s a smart option.

Thanks for sharing!

Cheers,
Ros

Thanks kindly for sharing your experience and this information with us. I’m glad to hear that your state rep is working to stop the tax. Let’s hope his (and your) efforts succeed!

Cheers,
Ros