Feeds

Amazon affiliates nixed in two more states

Rhode Island removed, Hawaii punched

Designing a Defense for Mobile Applications

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? ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.