Amazon.com Prepared to Drop Affiliate Relationship with Institute

We were not kidding when we said the online sales tax collection bill was a job- and commerce-killing move.

by Kristina Rasmussen

Earlier today I blogged about how the Illinois House was considering a bill to count Illinois-based affiliates in what counts as “nexus” for online sales tax collection purposes. We testified against it back in 2009. The bill passed.

The Illinois Policy Institute has a marketing relationship with Amazon.com. We send people to Amazon.com based off a link on our website, and we receive a small cut of any purchases stemming from that connection.

We just received this message from Amazon.com:

Greetings from the Amazon Associates Program:

We regret to inform you that the Illinois state legislature has passed an unconstitutional tax collection scheme that, if signed by Governor Quinn, would leave Amazon.com little choice but to end its relationships with Illinois-based Associates. You are receiving this email because our records indicate that you are a resident of Illinois. If our records are incorrect, you can manage the details of your Associates account here.

Please note that this not an immediate termination notice and you are still a valued participant in the Amazon Associates Program. But if the governor signs this bill, we will need to terminate the participation of all Illinois residents in the Associates Program. After that point, we will no longer pay any advertising fees for sales referred to amazon.com, endless.com and smallparts.com nor will we accept new applications for the Associates Program from Illinois residents.

The unfortunate consequences of this legislation on Illinois residents like you were explained to the legislature, including Senate and House leadership, as well as to the governor’s staff.

Over a dozen other states have considered essentially identical legislation but have rejected these proposals largely because of the adverse impact on their states’ residents.

Governor Quinn’s office may be reached here.

We thank you for being part of the Amazon Associates Program, and wish you continued success in the future.

Sincerely,

Amazon.com