Monday, June 29, 2009

Amazon Ends Affiliate Program In North Carolina Over Sales Tax Bill

Amazon terminated its affiliate program in North Carolina to avoid paying a proposed sales tax, according to media reports.

In an e-mail message to associates — businesses that get a commission because they link their Web sites to, generating sales for the online retail giant — said the associates’ accounts have been closed as a “direct result of the unconstitutional tax collection scheme” expected to be passed by lawmakers and signed by Gov. Bev Perdue.

Amazon currently collects sales tax for a small number of states. But many states such as New York, Connecticut, Rhode Island and Hawaii are looking at collecting sales tax from online retailers as a new revenue stream that will help close their budget gaps.

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