Death and taxes. Two things none of us can avoid. But some online retailers are trying to avoid collecting sales tax in states that have enacted or are about to enact laws requiring that taxes be collected. In response some online retailers like Overstock, eBay and others are dropping their affiliate programs in states that are or may require that taxes be collected.
According to one article it also states that:
Overstock is the next company to drop affiliate programs in states considering or having passed affiliate nexus bills. While North Carolina, Rhode Island, and Hawaii affiliates are already seeing programs dropped by Amazon and Blue Nile, this time California affiliates are also getting the boot.
“It’s painful to have to terminate these relationships with affiliates, simply because they live in states where counterproductive (and likely unconstitutional) laws are being passed,” said Patrick Byrne, Chairman and Chief Executive Officer of Overstock.com. “However, politicians have to remember that a tax is a price that government charges for a service, and when they raise their prices, we’re going to buy less of their services.”
So how will new tax laws being put in place affect those of us who shop on the Internet? Will it mean higher prices? You decide.