mhansen - 12:47 pm on Jan 8, 2011 (gmt 0)
I think it's only referred to as the Amazon Tax since the name stuck a few years ago. It actually applies to ALL businesses that have affiliates or associates in the state, where physical products are shipped. (Which as I understand, is why it does not affect adsense... yet)
Amazon is just the biggest name to try and curb it, by getting their affiliates to get behind and try to block it. Amazon dropped us affiliates in NC over a year ago... and it's not changed. I doubt it will. They simply moved on. In NC, the state legislature is in the midst of a battle now, trying to get Amazon to disclose all purchasing records for several years, so they can go after the buyers who did not report the out of state purchases on state tax returns. (Breaking the tax laws) (link [mcclatchydc.com])
Loopholes or creative workarounds like this are going to become far more widespread as states need to find ways to fill the shortfalls in budgets. As more and more states pile on... something will have to be done, or online commerce will be considered the black market.