North Carolina Offers Tax Amnesty For Online Retailers

The North Carolina Department of Revenue said today it is working with online retailers who operate affiliate programs in the state to resolve issues of tax liability.

Kenneth-Lay-North-Carolina The state said it will waive all back sales taxes and penalties for online retailers that sign an agreement by August 31 to start collecting sales tax.

An initiative called the Internet Transactions Resolution Program is the result of discussions between the department and a number of ecommerce retailers.

"We are going to be asking quite a number of them to participate in the program," said revenue Secretary Kenneth Lay. "We have positive indications that several will sign up."

Any retailer that did not register for sales and use tax as a result of an affiliate program in North Carolina at any time is eligible to participate in the program. Retailers may resolve their prior tax liability by registering for sales and use tax and agree to collect and pay those taxes for four years, beginning September 1.

The program begins today and retailers have until June 30 to register for the program. Retailers who do not register will be subject to taxes, penalties and interest.

There are 7 Comments. Add Yours.

v-pills
April 25, 2010 at 8:40 am

Thanks for good informations.
Carroll
April 25, 2010 at 2:02 pm

Hate to see it. Amazon will pull out, just like the did here in Colorado. The affiliates were drop immediately all over the state. I believe that other retailers will follow suit.

Amazon, is the biggest retailer, has already pulled out of 3 states because of these types of laws.

Too bad for all their affiliates there.
Guest
April 25, 2010 at 3:16 pm

This is absurd. If Internet taxes are allowed to be levied on a state level, what’s to stop individual counties and cities from enacting similar taxes on Internet sales. And what retailer could possibly keep up with them all, let alone report to so many agencies every month?

Right now it may be dozens, but down the road it could literally be hundreds of individual reports to file every single month.

As an Internet retailer since 1996, I would gladly participate in an embargo against any state or municipality that would attempt to impose these kinds of taxes/restrictions.
Dr. Dar
April 26, 2010 at 7:36 am

NC has really hurt not only themselves but also the affiliates who used to have plenty of Amazon sales or affiliates whose primary revenue came from Amazon affiliate sales. Amazon has dropped NC affiliates and I am sure they will follow suit in other states.

This is a poor choice by the NC Dept of Revenue – because not only will they NOT get revenues from this tax but they have caused many business failures.

I would like to see the NC Dept of Revenue not make these decisions in a vacuum and hear from all sides and make a decision collaboratively.
Guest
April 26, 2010 at 9:55 am

why dont you check your comments and delete sapm comment like the one above about vpills and the guys penis?
Bradley
April 26, 2010 at 2:00 pm

The Tax is old news. I believe Amazon and many other merchant have already pulled out of NC last year. Amazon also pulled out of Colorado last month.

27C.2 of SB 202 passed the NC govenors office August 2009. so it’s already set. Now they are talking about “amnesty” if merchants say they will be ready in 2010 August for taxing NC residents.

you can view more here:
http://www.cj.com/news/internet_tax.html
Tim
April 26, 2010 at 9:39 pm

See ya’ North Carolina……I already moved my Amazon and eBay affiliate businesses to Georgia.

That’s over seven figures in sales gone from North Carolina. Ouch!

If this continues …..I’ll move it offshore.