Posts Tagged ‘tax’

Mar. 16, 2010 – While Amazon.com moved swiftly last week to halt its business relationships with affiliate marketers in Colorado, ClickBank officials vowed to continue to work with affiliate marketers located in the company’s home state despite a new law that taxes affiliates’ sales.

Amazon terminated its marketing affiliate program in Colorado just eight days after a new law took effect that will tax affiliate sales. In what was viewed as a surprise move by some of the estimated 4,000 online affiliate marketers in the state, Amazon distributed a letter to affiliates saying the company would immediately cease doing business with them because of the new tax law.

But ClickBank, a global online retailer headquartered in Broomfield, Colo., says it has no intention of terminating relationships with affiliates or discontinuing its longstanding policy of collecting and remitting taxes to the appropriate tax authorities in various domestic and international jurisdictions.

“We will continue to honor our agreements with affiliates in Colorado and all other states in the U.S., and will continue collecting and remitting taxes in compliance with the new laws affecting affiliate sales,” said Dush Ramachandran, ClickBank vice president of sales and business development.

BROOMFIELD, Colo. – (Aug. 10, 2009) – ClickBank officials will continue to work with affiliate marketers in states that are enacting new laws to tax the marketers’ sales, while Amazon and Overstock.com, among others, have been moving swiftly to halt its business relationships with affiliate marketers in various states because of the new tax implications.

In late June, Amazon terminated its marketing affiliate program in North Carolina after a new law took effect that will tax affiliate sales, and on July 1, Overstock.com notified affiliates in Hawaii, North Carolina and Rhode Island that it would immediately cease doing business with them because of similar new tax laws.

But ClickBank, a major online retailer, says it has no intention of terminating relationships with affiliates in certain locations or discontinuing its longstanding policy of collecting and remitting taxes to the appropriate tax authorities in various domestic and international jurisdictions.

“We will continue to honor sales agreements with affiliates in the U.S. and abroad, despite new taxes that are being levied against them for sales and marketing efforts,” said Dush Ramachandran, vice president of sales, marketing and business development for ClickBank.

“One of the benefits of being a ClickBank affiliate is that you can operate wherever you live,” said Ramachandran. “We don’t want to place limits on that now. Our affiliates deserve the opportunity to earn income regardless of where they live, and ClickBank will continue to support them in their efforts to do so.”

New state tax laws aim to collect sales tax revenues from affiliates whose marketing activities lead to ecommerce sales. The key issue is whether the affiliates have a physical presence in a state that taxes ecommerce activities. The state of New York was the first to enact such tax laws, and more states are following suit.