Friday, March 4, 2011

Amazon Threatens To Cut California Affiliates

E-commerce giant Amazon.com has told the California Board of Equalization that it would cut ties to its California affiliates, if any of four bills looking to force Internet retailers to collect sales tax are passed. According to Amazon it would be "compelled to end its advertising relationships" with over 10,000 California-based participants in Amazon Associates, its affiliate program, if any of those new tax collection bills are passed. Amazon is no stranger to battles with states over collection of Internet sales taxes, and has dropped its affiliates in Colorado, North Carolina, and Rhode Island over similar tax bills. Amazon.com threatened the cuts in a February 24th letter to the BOE. Internet taxes have been an area of frustration for states, which have increasingly looking at e-commerce sales as a way to patch budget shortfalls. California has, for years, looked to spur consumers to voluntarily pay a "use tax" for their Internet and Amazon purchases, but has seen widespread disregard and noncompliance with those taxes.

---