Affiliates Get A Win: Amazon Will Collect Sales Tax In Indiana

amazon-logoAmazon has agreed to begin collecting sales tax in Indiana, marking a rare win both for affiliates and U.S. states.

The company and state announced the agreement Monday, a deal that requires Amazon to collect sales tax on internet purchases on January 1, 2014 — or 90 days after any federal legislation on internet sales tax is enacted, whichever comes first.

Several U.S. states — looking for ways to regain sales tax losses as commerce shifts online — have pressured Amazon to begin collecting sales tax, citing the company’s affiliates as evidence that Amazon has a presence inside their state borders. Some have passed laws that would require Amazon to collect sales tax and, on several occasions, Amazon has responded by shutting down its affiliate program in those states. That won’t happen in Indiana.

Today’s announcement makes Indiana the fourth state to reach an agreement with Amazon on sales tax collection, but both the state and the company agree that federal legislation is needed to solve the online sales tax issue.

Indiana estimates that it will collect $20 million to $25 million per year from Amazon when the agreement takes effect.

Related Topics: Affiliate Marketing | Amazon | Channel: Retail

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About The Author: is Editor-In-Chief of Marketing Land. His news career includes time spent in TV, radio, and print journalism. His web career continues to include a small number of SEO and social media consulting clients, as well as regular speaking engagements at marketing events around the U.S. He recently launched a site dedicated to Google Glass called Glass Almanac and also blogs at Small Business Search Marketing. Matt can be found on Twitter at @MattMcGee and/or on Google Plus. You can read Matt's disclosures on his personal blog.

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  • http://twitter.com/sunshinetricia Tricia Meyer

    As an affiliate marketer in Indiana, I was really glad to see this!

  • http://bestnoisecancellingheadphone.org Flirtilizer

    I hate to see this myself but the states really have no choice. One has to wonder what will eventually happen to large malls. Will we always need them. I live in a no sales tax state. :)

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