On Wednesday Illinois Governor Pat Quinn signed a bill repealing the death penalty in the state. The next day Quinn signs a bill into law creating a new death penalty, for Illinois Internet entrepreneurs.

House Bill 3659, what was commonly referred to as the Amazon tax bill, changed the definition of what is an out-of-state retailer. If a company has a physical presence in a state and someone from that state buys from them, they must collect taxes on that purchase. If someone from one state buys something from a company in another state, that company does not have to collect taxes on that sale, and – many people don’t know this – the purchaser must report to their home state what taxes they “should have” paid to their state on that purchase! As many people buy online from firms outside of their home state, they avoid paying sales tax.

The Amazon bill targeted Amazon.com and other companies who do not have a physical presence in the state, but do have affiliate marketers in the state. In the case of Illinois, someone like myself, and thousands of others who place links on their Web sites for products, now are considered a physical presence in Illinois for that company. As an Amazon Affiliate, by being in the Land of Lincoln, in the eyes of Pat Quinn, State Senate President John Cullerton and the rest of the short-sighted legislators who voted for this, Amazon IS in Illinois if someone buys from a link on my Web site.

Amazon, Overstock, other out-of-state retailers, myself and many others believe this is unconstitutional. It was pushed by in-state retailers as a way of “leveling the playing field.” But does it really? By canceling affiliate partnerships with Illinois businesses and residents, Amazon remains an out-of-state retailer. Illinois residents can still purchase from Amazon and others and not pay sales tax. Illinois businesses and residents who earned affiliate revenue previously no longer are – and those people were paying taxes on their earnings!

As a result, this is a true lose-lose situation for the fiscally unstable State of Illinois and its residents. But don’t try telling Pat Quinn this. This is the same person, in his budget for the state, had a line-item for repairs to the Governor’s Mansion. Meanwhile, the state is not paying its bills. A disaster if there ever was one.

For myself personally, I did not make a significant amount of money from Amazon. There are many out there whose sole income is from affiliate marketing, both individuals and businesses. There’s no wonder New Jersey, Wisconsin and Nevada have been trying to lure Illinois-based businesses to their states.

Below is the text of the email I got from Amazon canceling my affiliate accounts. A great article on the math of the Amazon tax bill at the Chicagoist blog is worth reading. There is also a lively conversation at Revenews on this as well. I welcome your thoughts on this move by Illinois in the comments for this post.

Hello,

For well over a decade, the Amazon Associates Program has worked with thousands of Illinois residents. Unfortunately, a new state tax law signed by Governor Quinn compels us to terminate this program for Illinois-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by Illinois-based affiliates like you - even if those retailers have no physical presence in the state.

We had opposed this new tax law because it is unconstitutional and counterproductive. It was supported by national retailing chains, most of which are based outside Illinois, 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 its enactment forces this action.

As a result of the new law, contracts with all Illinois affiliates of the Amazon Associates Program will be terminated and those Illinois residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, or SmallParts.com. Please be assured that all qualifying advertising fees earned prior to April 15, 2011 will be processed and paid in full in accordance with the regular payment schedule. Based on your account closure date of April 15, 2011, any final payments will be paid by July 1, 2011.

You are receiving this email because our records indicate that you are a resident of Illinois. If you are not currently a permanent resident of Illinois, 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 April 15, please contact us for reinstatement into the Amazon Associates Program.

To be clear, this development will only impact our ability to continue the Associates Program in Illinois, and will not affect the ability of Illinois residents to purchase online at [url=http://www.amazon.com]http://www.amazon.com[/url] from Amazon’s retail business.

We have enjoyed working with you and other Illinois-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 Illinois residents.

Regards,

The Amazon Associates Team

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Blogging • Business • Thrive • (4) Comments • Permalink

Last month there was joy in downtown Chicago as Target finally announced it would open a small-format store in the Sullivan Center, the former location of Carson Pirie Scott, called CityTarget. I say finally as the rumors of this move by the Minneapolis-based discount retailer have been around for over a year. As someone who both lives and works in the Loop, this is very welcome news.

Yet over 2 weeks after the announcement, there is no outward sign the store is opening. As you can see in the accompanying photo, there is no sign or bullseye logo at the corner of State and Madison Streets – only an exhibit by the School of the Art Institute is in the window.

When I heard of the name CityTarget, the first thing that popped into my mind was if Target had the domain name citytarget.com. It does, and wisely registered the name back in 2004. But if you go to www.citytarget.com, there is only a blank Web page. What does the normally boastful retailer have to hide?

Though no official date has been set for CityTarget’s opening, I do hope it’s soon, and I do hope they make some effort to promote it – the long empty windows of this historic building could use a little color.

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Build • Business • Domain Names • (1) Comments • Permalink

The next likemind will be Friday, March 18, 2011 in dozens of cities around the world.

In Chicago, it will be at Argo Tea, 140 S Dearborn St. at the corner of Adams and Dearborn Streets in the Loop from 8:00 am to 10:00 am.

I call likemind a gathering of creative-minded people, from various disciplines including Internet, advertising, art, social media, et. al. For more on likemind, read this great article on likemind Chicago from the Newcity and likemind from the New York Times.

Follow @likemindchicago on Twitter. You are welcome to join the likemind Chicago Facebook group.

Watch for future date announcements at http://likemindchicago.com/ - and Web site coming soon at that address!

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Announcements • Business • Technology • Thrive • likemind • (0) Comments • Permalink

While I say I cannot predict the future, sometimes things are so glaring to some and not others, by pointing out you are opening eyes for some people. One of them for me is “a” next frontier in the use of mobile technology – to get beyond the corporate firewall and use all of the tools and data like you can do on a full computer. Note I say “a” next frontier, as it is out there, I just don’t know if it’s the “next” or “last” frontier.

Why do I believe this? Over the years I have managed public Web sites, corporate Intranets, Extranets, portals and knowledge management systems. I have seen how these tools, when used effectively, make people productive. I have also seen how when not managed properly they become a huge mess and waste of resources. Typically, there is a mix of these within most organizations, everything from advanced applications, to a PC under someone’s desk hosting a group’s Intranet Web site, to email.

Going Beyond Email

Using your mobile device to work as you would at work is long overdue. Most corporate workers who have a mobile device use it for email. But beyond email, there may be a limited amount of apps or data available to them. Mobile devices have Web browsers, but you may not be able to make a VPN connection within your company’s firewall. Not having this prevents you from accessing what you can do on your work computer, from your desk or away from it.

More and more email is being used to get around this lack of access. Have you ever asked co-workers or your admin to send you files or information you can’t get at? I see this all the time as friends – even my wife – have to do this in order to get what they may need for a conference call they have to make from a remote location. There’s no other way, especially if getting online with your notebook computer is not an option, or you don’t want to lug it (and power cables, etc.) around.

Going Beyond Mindsets and Existing Network Infrastructure

Shortly before his inauguration, there was buzz about how US President Obama wanted to carry a BlackBerry. In the end, he got one. It is not completely known what kind of security is in use with his device, but the bottom-line is it was achievable. My guess is it’s not out of reach for most companies.

Part of the issue with going mobile with your company information is a mindset it is not secure. This is where you need to go beyond your current infrastructure. As tablets and smarter phones hit the market and become more and more commonplace, the demands from staff will require both of these looming issues to be addressed.

Do I Need An App For That?

Once you go beyond the firewall, the fun begins. Some content and applications may already look great on a mobile browser. Some package applications may already have mobile-friendly interfaces, or even apps to access data. I recently saw a development tool for interfacing with CICS screens on an iPad. (If you don’t know what CICS is, its how most applications were developed on mainframe computers that allowed users to enter and query data. As many CICS screens are still alive and kicking today, thus the opportunity for such a tool). Then there’s the content and applications where you’ll need to either build or buy (or both) to access them outside of the office.

Access content and data in multiple formats on multiple platforms is an opportunity to drive innovation in your corporate Intranet and sites. Everything from comprehensive search to centralizing content to reaping value “dead” or unpopular content can be gained from this effort. As you go forward, build into your requirements mobile platform compatibility, whether for your own internal development or for your third-party vendors. Just think about taking an online training course on your mobile device while sitting in the waiting room for jury duty, and you get the power and convenience of extending the workplace to mobile devices.

Keeping Up With Small Businesses

Many small businesses have some of this capability already. Google Apps works well on Android devices. Salesforce.com has apps for many devices. QuickBooks Online has mobile versions of its full Web-based application. All of these are hosted, third-party services, which does not require the infrastructure to go beyond the firewall. As some larger businesses use Salesforce already, they have an advantage with the ability for their users to work on a mobile device.

Big Picture Thinking On Little Devices

Looking back on what I have presented, I covered a lot, and at a high-level, big picture perspective. As anyone who has worked in computer systems knows, the devil is in the details. But keeping in mind a roadmap to where you want to be, from the short-term to as far out as you can realistically plan, literally getting the information into the hands of those who need it will be critical and advantageous for any business. Let alone the opportunity for those who will be involved in making this happen, whether they build mobile hardware, platforms, apps or supporting software.

Do you agree on this future frontier of mobile? Are you looking forward to it? Are you using it today? Please share your thoughts in the comments of this post.

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Business • Mobile Technology • Strategize • Technology • Thrive • Web Development • (0) Comments • Permalink

The next likemind will be Friday, February 18, 2011 in dozens of cities around the world.

In Chicago, it will be at Argo Tea, 140 S Dearborn St. at the corner of Adams and Dearborn Streets in the Loop from 8:00 am to 10:00 am.

I call likemind a gathering of creative-minded people, from various disciplines including Internet, advertising, art, social media, et. al. For more on likemind, read this great article on likemind Chicago from the Newcity and likemind from the New York Times.

Follow @likemindchicago on Twitter.

Watch for future date announcements at http://likemindchicago.com/ - and Web site coming soon at that address!

Did you enjoy reading this? You are welcome to subscribe to The Hot Iron by RSS feed or by email.

Announcements • Business • Technology • Thrive • likemind • (0) Comments • Permalink