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 Amazon.com, generating sales for the online retail giant — Amazon.com 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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