Amazon Associates Program Terminated in Louisiana Effective April 1: No Joke

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Amazon Associates Program Terminated in Louisiana Effective April 1: No Joke

By: Pat Austin

SHREVE­PORT – Ama­zon is end­ing its Asso­ciates Pro­gram in Louisiana effec­tive April 1. I received this email last week:

Greet­ings from the Ama­zon Asso­ciates Program:

We’re writ­ing to inform you that the Louisiana state leg­is­la­ture has passed, and Gov­er­nor John Bel Edwards has signed, a bill to estab­lish tax nexus and impose tax col­lec­tion require­ments, which is forc­ing Ama​zon​.com to end its adver­tis­ing rela­tion­ships with all Louisiana-​based asso­ciates. You are receiv­ing this email because our records indi­cate that you are a res­i­dent of Louisiana. If our records are incor­rect, please update the details of your Asso­ciates account here before March 25, 2016 to avoid termination.

Please note that this is not an imme­di­ate ter­mi­na­tion notice and you are still a val­ued par­tic­i­pant in the Ama­zon Asso­ciates Pro­gram. How­ever, if this bill is not repealed or over­turned prior to going into effect April 1, we will no longer pay any adver­tis­ing fees for sales referred to Ama​zon​.com or its sub­sidiaries, and we will not be able to accept new appli­ca­tions for the Ama­zon Asso­ciates Pro­gram from Louisiana residents.

The unfor­tu­nate con­se­quences of this leg­is­la­tion affect­ing Louisiana res­i­dents like you were explained to the Louisiana 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.

Should you feel the need to voice your opin­ion directly, Gov­er­nor Edwards’ 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,

The Ama­zon Asso­ciates Team

Now, I didn’t make a lot from my Ama­zon refer­rals, not the kind of seri­ous change Stacy McCain makes from them, but that lit­tle com­mis­sion incen­tive was nice every now and then. Remem­ber when cap­i­tal­ism was a good thing?

Louisiana con­sid­ered pass­ing the Ama­zon Tax in 2011 but at the time Gov­er­nor Jin­dal vetoed the bill for the pur­pose of keep­ing his no new taxes pledge. There was lit­tle doubt this time that our new gov­er­nor, Mr. “Tax to Pros­per­ity” John Bel Edwards, would sign the bill.

Leg­is­la­tors don’t really know how much income this new tax will gen­er­ate. Stud­ies have shown that peo­ple don’t spend quite as much on Ama­zon pur­chases once the sales tax kicks in:

Indeed, the researchers found that low-​income house­holds reduced the amount they spent on goods on Ama­zon by 12 per­cent, while high-​income house­holds pulled back by 9 per­cent. The researchers sug­gested this makes sense given that low-​income shop­pers gen­er­ally tend to be the most price-​sensitive.

The Ama­zon Tax had an espe­cially chill­ing effect on big-​ticket pur­chases that totaled more than $250, the study found. On these trans­ac­tions, Ama­zon sales declined 11.4 per­cent once the tax was put in place.

So, here ends my rela­tion­ship with the Ama­zon Asso­ciates pro­gram. No more refer­ral links at the end of my posts. No more lit­tle cash incen­tives for advertising.

Sad.

Pat Austin blogs at And So it Goes in Shreveport.

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By:  Pat Austin

SHREVEPORT – Amazon is ending its Associates Program in Louisiana effective April 1. I received this email last week:

Greetings from the Amazon Associates Program:

We’re writing to inform you that the Louisiana state legislature has passed, and Governor John Bel Edwards has signed, a bill to establish tax nexus and impose tax collection requirements, which is forcing Amazon.com to end its advertising relationships with all Louisiana-based associates. You are receiving this email because our records indicate that you are a resident of Louisiana. If our records are incorrect, please update the details of your Associates account here before March 25, 2016 to avoid termination.

Please note that this is not an immediate termination notice and you are still a valued participant in the Amazon Associates Program. However, if this bill is not repealed or overturned prior to going into effect April 1, we will no longer pay any advertising fees for sales referred to Amazon.com or its subsidiaries, and we will not be able to accept new applications for the Amazon Associates Program from Louisiana residents.

The unfortunate consequences of this legislation affecting Louisiana residents like you were explained to the Louisiana 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.

Should you feel the need to voice your opinion directly, Governor Edwards’ 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,

The Amazon Associates Team

Now, I didn’t make a lot from my Amazon referrals, not the kind of serious change Stacy McCain makes from them, but that little commission incentive was nice every now and then.  Remember when capitalism was a good thing?

Louisiana considered passing the Amazon Tax in 2011 but at the time Governor Jindal vetoed the bill for the purpose of keeping his no new taxes pledge. There was little doubt this time that our new governor, Mr. “Tax to Prosperity” John Bel Edwards, would sign the bill.

Legislators don’t really know how much income this new tax will generate.  Studies have shown that people don’t spend quite as much on Amazon purchases once the sales tax kicks in:

Indeed, the researchers found that low-income households reduced the amount they spent on goods on Amazon by 12 percent, while high-income households pulled back by 9 percent. The researchers suggested this makes sense given that low-income shoppers generally tend to be the most price-sensitive.

The Amazon Tax had an especially chilling effect on big-ticket purchases that totaled more than $250, the study found. On these transactions, Amazon sales declined 11.4 percent once the tax was put in place.

So, here ends my relationship with the Amazon Associates program.  No more referral links at the end of my posts.  No more little cash incentives for advertising.

Sad.

 

Pat Austin blogs at And So it Goes in Shreveport.

*******************************************************************

I’m back trying to get that elusive $61 a day for DaTipJar.

I’d like to think we do good work here If you’d like to help us keep up the pace please consider hitting DaTipJar




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If less than 1/3 of 1% of our February readers this month subscribed at $10 a month we’d have the 114.5 subscribers needed to our annual goal all year without solicitation.

If less than 2/3 of 1% did, I’d be completely out of debt and able to attend CPAC

If a full 1% of our February readers subscribed at $10 a month I could afford to travel across the country covering the presidential race this year in person for a full month.

Plus of course all subscribers get my weekly podcast emailed directly to you before it goes up anywhere else.


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