Amazon cuts off affiliates in Arkansas, Connecticut

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Seattle—, responding to yet more state laws that impose sales taxes on Internet transactions, has terminated its affiliate program in Connecticut and plans to do the same in Arkansas, where the company pays commissions on sales received through local websites. Both states are among several seeking new sources of revenue via laws that require local online resellers to collect sales tax on transactions, even if the product is delivered from an out-of-state company, such as Seattle-based Amazon. State sales taxes typically are levied only on transactions from companies with in-state presences, such as brick-and-mortar stores. Amazon has waged similar battles with other states, including Illinois whose law was passed in March. This month, the Performance Marketing Association filed suit against the state, challenging the constitutionality of the law. Amazon also threatened to pull its affiliate program out of North Carolina, but the Tar Heel state has since capitulated under pressure from Amazon and the American Civil Liberties Union.
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