Feeds

Amazon affiliates nixed in two more states

Rhode Island removed, Hawaii punched

Combat fraud and increase customer satisfaction

Amazon.com is tearing out two more stars on the American flag to avoid collecting taxes.

The online retailer has dumped marketing affiliates in Hawaii and Rhode Island in protest of the states passing laws that would force Amazon to collect sales taxes from locals.

Amazon's affiliate program pays commissions to website owners who direct buyers to Amazon products. Normally, a store is required to collect a state sales tax only if it has a physical presence in the area. But strapped for cash, many states have followed New York's lead in passing legislation that counts affiliates as near enough to a physical presence to require the tax collection on purchases originating there.

After New York state passed the online levy scheme in 2008, Amazon sued, ,and now begrudgingly plays the tax man.

However, when North Carolina drafted a similar bill this week, Amazon simply pulled the plug on all affiliates located in the state.

Now that Rhode Island and Hawaii are also following suit, Amazon is crossing them out of the program as well. The retailer calls the state laws "unconstitutional," arguing the affiliates program doesn't amount to a physical presence.

Overstock.com took a harder line with New York and began pulling affiliates immediately after the court decision. It's now nixed their program in Rhode Island, North Carolina, and Hawaii too.

The state-by-state showdown could become a much bigger issue now that California is near to joining the sales tax collection drive. Amazon has already hinted its finger is on the trigger. So how about it Golden State, do you feel lucky? Well, do ya, punk? ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.