If you were affected by the affiliate Nexus tax aka Amazon tax or Amazon affiliate tax, then you know how devastating it can be. Amazon and tons of other companies have again and again pulled out of any states that passed this bill which requires them to charge sales tax because they believe it’s unconstitutional due to a law that was passed in 1992 that prevents interstate taxes. Several states have already passed this bill (Arkansas, Connecticut, Illinois, New York, North Carolina, Rhode Island, and California being the latest) and so far, it hasn’t created the revenue these states thought it would create.
The Amazon Affiliate Tax Solution
Regardless, the ones who are most affected are the thousands of affiliates and small business owners. If you’re part of this group of people, then one solution is to sign up for this free program. They’re a company based in CA that basically allows you to get around this Nexus bill since they’ve somehow been able to work out a deal with Amazon. They do take a percentage of your affiliate earnings though, but unless you are willing to move to another state, it’s a simple solution that can be implemented right away. That way, you can at least retain some of your earnings.
If you’re a company that makes a ton of money, you can work out a deal with them to lower that percentage. They work with thousands of affiliates, not just Amazon, so if you were dropped by any affiliates, then chances are, this company can help you stop some of the income that is being lost because of this bill.
Get Back 75% – 105% of Your Amazon Earnings
Yes, 105%. The percentage that this company takes is 25%. HOWEVER, because they have large accounts with Amazon, your percentage will likely start at 8.50% each month instead of 4%. If you’re an Amazon affiliate, then you know that the more items you sell, the higher your percentage of the sales is.
Most affiliates never make it to 7%. Do the math and you’ll discover that if you typically make 6%, you will actually make MORE by signing up with this program even though they take 25% since you’ll be at 8.50%. Even if you’re typically at 7%, you’ll only be losing out on 10% earnings which if you’re affected by this bill, it’s a lot better than losing 100%. Although, if the most you get is 7 or even 7.5%, then that means it takes you at least half a month to even get to that point. Considering that you’ll be starting at 8.5% right off the bat with this program, the percentage loss is even less.
Of course, on set % items like electronics, you’ll still be at 4% and these calculations only pertains to Amazon.
Nexus Hurts Everyone
Small online businesses have been greatly affected by this Nexus bill. The states think they will make money by passing the law but not only do they NOT make money, they end up LOSING money. No sales tax gained PLUS less income tax due to affiliate programs like Amazon, Overstock, Zappos and a ton of others ending their contracts with affiliates makes this a ridiculous bill which forces people to either move out of the state or eliminate jobs.
It looks like more and more states will start passing this bill. Write to your governor and demand that this bill not be passed if it ever comes up. If it has already been passed in your state and you can’t just move, then sign up with this program for free until this bill is overturned.
This guy should’ve been governor. He has common sense.
Here’s a video that explains the downside of this bill and how it hurts small businesses.
Here’s one about Fatwallet and how they had to basically move out of Illinios because this bill was passed.