Feeds

Amazon.com dumps North Carolina affiliates

Says ta-ta in anticipation of taxes

Beginner's guide to SSL certificates

Amazon.com was willing to blink for New York state's online taxing plan, but it's not putting up with North Carolina.

The online retailer said it's dumping all its North Carolina-based business associates in anticipation of the state passing a law that forces it to collect sales tax on locals.

Amazon emailed its North Carolina associates late Friday informing them the "unconstitutional tax collection scheme expected to be passed any day now," gives the company "little choice but to end its relationships." The program pays commissions to web site owners who direct buyers to Amazon products.

The disputed tax legislation, drafted to help fill North Carolina's budget gap, would require online retailers with a physical presence in the state to collect sales tax on purchases originating there - same as a regular brick-and-mortar store. Customers are already supposed to pay a tax for online purchases on their own, however unsurprisingly, this isn't widely done.

"In the event that North Carolina repeals this tax collection scheme, we would certainly be happy to re-open our associates program to North Carolina residents," the email said.

When New York state passed a similar bill in 2008, Amazon and Overstock.com sued the state and lost. The companies claimed just having affiliates in the area wasn't sufficient enough to be considered having a physical presence in the state.

Overstock ended up nixing its affiliates in New York state, while Amazon begrudgingly started collecting sales tax.

With other US states eyeballing identical online tax proposals to aid their empty coffers, Amazon is clearly drawing its line in the sand on this one. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.