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This is a letter I just sent to Sen. David Rouzer regarding the state budget bill and a small piece of it that will affect thousands of affiliate marketers.
Subject: OPPOSITION to SB 202 pg 268, line 42 through pg 269, line 18.
Dear Senator Rouzer:
I am a small business owner with a website, and I am in strong opposition to SB pg 268, line 42 through pg 269, line 18, which would require retailers that advertise and receive direct or indirect referrals from advertising on websites, such as mine, to collect sales tax in the Great State of North Carolina.
I am opposed to this bill because it would substantially harm my small business by reducing a large source of revenue that I depend on to survive. This revenue results from providing advertising on my website on behalf of out-of-state retailers. I run several affiliate businesses including job boards, websites that publish Google ads and I am also an Amazon affiliate. This part of my business is what I use to save money for my son to attend college in North Carolina. This could all end with this bill.
If retailers believe that doing business with me will result in their having to collect sales tax on all North Carolina sales, they likely will sever ties with my business and all similar businesses in North Carolina, putting the viability of my business at risk and also putting at risk the tax revenue generated by my income.
I’m sure you’ve already heard about Amazon’s reaction to this bill. They are telling ALL NC affiliates that they will no longer pay us for our hard work.
To put it more clearly, the less money I make, the less money I send to Raleigh every April. This bill, as it is now, will hurt me, my family and this state.
Please oppose this bill based on these three things:
1. You won’t get the sales/use tax you thought you would from affiliate sales because there will be NO AFFILIATES in the great State of North Carolina.
2. You will not get the income tax from the income that is generated by affiliate sales because there will be NO AFFILIATE SALES in North Carolina.
3. You will have erased with one broad bill the income of THOUSANDS of AFFILIATES in North Carolina, me included, and forced many of them (possibly our family) to rely on state aid to get by.
A similar law passed in New York State. The taxpayers and affiliates of that state were rewarded with Overstock dismantling its affiliates program and hundreds of other business following Overstock’s example. This left thousands of affiliates – most of which are small- and medium-sized businesses (like mine) – with a major loss of income.
For these reasons, I respectfully oppose this legislation. I hope you do too.
Sincerely,
Jason Pedley
152 Falcon Pointe Lane
Clayton, NC 27520
(919) 763-8474
{ 4 comments… read them below or add one }
Let me guess…you got no response either?
It amazes me that with the millions of dollars this state is spending to support illegals, they decide to do something that will guarantee to put many NC small businesses out of business. I just spent 3 months building affiliate links to a new website – for nothing apparently since other linking companies (like Blue Nile), are already dropping NC residents.
And there is SO much other work available in Siler City…..
Good luck….
Thank you for your comment. My Senator (Rouzer) had a positive response – he’s against all new taxes and tax increases. But the problem is so much bigger than just taxation. It’s a fundamental misunderstand on the part of politicians (not all) of how today’s economy works. Gov Perdue PROVED her misunderstanding of the #ncaffiliatetax when she said to News14:
Really? Because the way I understand it, all of us in NC will still be able to buy from Amazon.com. We just won’t be able to do it through any NC affiliates. Meaning there will be no taxed affiliate/advertising revenue in NC.
Nobody is refusing to sell to our state – that’s absurd. Get a clue Bev Perdue.
My site was exclusively Amazon. Needless to say, I have nothing now. What a dum idea.
Rebuild. I know it sucks, but you can’t let the idiots in the NC Leg push you around. Rebuild, diversify, do what you can. I do more work FOR affiliates than affiliate work for myself, but it still has an impact on me.