I have a problem with Governor Malloy of Connecticut. His policies are not doing anything to grow the state. Yes, we are in a financial recession. Yes, the state has a pretty big deficit but the policies he has proposed or implemented in the first 6 months of office have not made Connecticut enticing to move to or stay in. From raising income tax, sales tax, sales tax on clothing to taxing pedicures, tax on home buyers and now this.
Amazon.com had a nice little program for associates. Launched in 1996, the program is one of the most successful affiliate programs on the internet. It helps store owners, Amazon sellers and developers make money by advertising products from Amazon.com and it’s subsidiaries. I could build a store front or link to a particular product. If that product was purchased I would get a little percentage of the transaction.
Well, Governor Malloy decided he wants a piece of the action. He is imposing a tax on any of the transactions that take place. This is counterproductive to the whole idea of what Amazon put in place.
As of today, June 10 2011, this program is officially canned for Connecticut residents. Nice job Malloy, take away yet another thing.
Here is the letter from Amazon:
Hello, For well over a decade, the Amazon Associates Program has worked with thousands of Connecticut residents. Unfortunately, the budget signed by Governor Malloy contains a sales tax provision that compels us to terminate this program for Connecticut-based participants effective immediately. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by Connecticut-based affiliates like you - even if those retailers have no physical presence in the state.
We opposed this new tax law because it is unconstitutional and counterproductive. It was supported by big-box retailers, most of which are based outside Connecticut, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.
As a result of the new law, contracts with all Connecticut residents participating in the Amazon Associates Program will be terminated today, June 10, 2011. Those Connecticut residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before today, June 10, 2011, will be processed and paid in full in accordance with the regular payment schedule.
You are receiving this email because our records indicate that you are a resident of Connecticut. If you are not currently a resident of Connecticut, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state after June 10, 2011, please contact us for reinstatement into the Amazon Associates Program.
To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to Connecticut residents and will not affect their ability to purchase from www.amazon.com.
We have enjoyed working with you and other Connecticut-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to Connecticut residents.
The Amazon Associates Team