North Carolina's version of the "Amazon Tax"

posted by jangro on (3 years, 1 month ago)

North Carolina has joined the Amazon Tax club with their Senate Bill 487 and House bill 558. They appear to be modifying existing mail order laws to include "remote" sales, which is what they're calling affiliate sales.

The following is from the Senate bill, though the House Bill reads the same. Underline is new text replacing the strikeout text.

"(b)      Mail Order Remote Sales. – A retailer who makes a mail order remote sale is engaged in business in this State and is subject to the tax levied under this Article if at least one of the following conditions is met:

(1)        The retailer is a corporation engaged in business under the laws of this State or a person domiciled in, a resident of, or a citizen of, this State.

(2)        The retailer maintains retail establishments or offices in this State, whether the mail order remote sales thus subject to taxation by this State result from or are related in any other way to the activities of such establishments or offices.

(3)        The retailer has representatives in this State who solicit business or transact business on behalf of the retailer, solicits or transacts business in this State by employees, independent contractors, agents, or other representatives whether the mail order remote sales thus subject to taxation by this State result from or are related in any other way to such the solicitation or transaction of business. A retailer is presumed to be soliciting or transacting business by an independent contractor, agent, or other representative if the retailer enters into an agreement with a resident of this State under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet Web site or otherwise, to the retailer, if the cumulative gross receipts from sales by the retailer to purchasers in this State who are referred to the retailer by all residents with this type of agreement with the retailer is in excess of ten thousand dollars ($10,000) during the preceding four quarterly periods. This presumption may be rebutted by proof that the resident with whom the retailer has an agreement did not engage in any solicitation in the State on behalf of the seller that would satisfy the nexus requirement of the United States Constitution during the four quarterly periods in question.

By my count, the states now with the Amazon tax in some part of the legislative process are: New York, California, Hawaii, Connecticut, Minnesota, and North Carolina.

Don't wait for your state to join the list. Contact your state representatives NOW so they at least have a clue that this bill may be hurting small business in their state.


Comments & Reactions

  • jangro saved this to Affiliate Marketing 3 years, 1 month ago

  • Posted by StephARC 3 years, 1 month ago

    Thanks for giving us this update Scott I am adding North Carolina to the list.

    reply

  • Posted by Sam Harrelson 3 years, 1 month ago

    Woohoo! Go NC!

    Oh...wait.

    Dammit.

    Well, I'm precinct chairperson now but maybe I need to speed up that run for Governor thing.

    reply
    ↳

    Posted by Scott Jangro 3 years, 1 month ago

    Amazon has stated in a letter to Hawaii (who is working on similar legislation) that they will terminate all Hawaii affiliates instead of collecting use tax on HI residents.

    The stakes were apparently too high in NY where there were surely some large publishers. Or maybe they since learned that it would have been less costly to terminate affiliates there as well. They may do the same in NC.

    Don't wait for your Gov. seat to act.

    reply

  • Posted by Geno Prussakov 3 years, 1 month ago

    Add Illinois to your list. I have a draft of their bill dated 12/02/2008, which goes along the same lines.

    reply
    ↳

    Posted by Scott Jangro 3 years, 1 month ago

    Geno, what's the bill number?

    reply
    ↳

    Posted by Geno Prussakov 3 years, 1 month ago

    It's Use Tax section 150.201. I've just sent you an e-mail about it, Scott.

    reply

  • Posted by #AdvertisingTax Updates | Stephanie Lichtenstein 3 years, 1 month ago

    [...] Jangro is the first to cover breaking news on his blog:  North Carolina House and Senate Bill changes to incorporate the #AdvertisingTax. Tennessee’s Legislation [...]

    reply

  • Posted by seyret 3 years, 1 month ago

    trade shows are helpful. the exposure you get is worth it.

    reply

  • Posted by Chris Love 2 years, 11 months ago

    This is just another example of why I need to get out of this socialist state. They are trying their best to kill the economy here by following the wonderful example set by the state of Mich. This is why electing liberals to power is a terrible thing. I will be moving myself and all of my business assets to Texas as soon as I can.

    reply

  • Posted by Oussama 2 years, 10 months ago

    oh yeah Add Illinois !

    reply

  • Posted by tax lien investing 2 years, 10 months ago

    Welcome to the state Comrade

    reply

  • Posted by the tax club 2 years, 5 months ago

    Very interesting

    reply

  • Posted by the tax club 2 years, 5 months ago

    Very interesting

    reply

  • Posted by lbr533 2 years, 2 months ago

    wow! great

    reply

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