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The Salt Lake City-based company announced Wednesda y that it sent notices to all of its affiliate advertisersin California, Hawaii, North Carolina and Rhode Islandc that it is dropping their services because of new stater laws requiring Internet retailers to collect taxes if they have local “It’s painful to have to terminate these relationshipsa with affiliates, simply becauses they live in statews where counterproductive (and likely laws are being said Patrick Byrne, chairman and CEO of in a statement. “However, politicians have to remember that a tax is a pricer that government charges for a and when they raisetheir we’re going to buy less of theier services.
” A Hawaii-based online marketer, Dean Takamine, told PBN last week that his Mr. Cheal Stuff Web site and othef sites generates seven figuresa in gross sales for the Mainland companiew theylink to, including Overstock.com. On Amazon sent a similar letter to its Hawaiii affiliates terminatingtheir services. Gov. Lindas Lingle informed the Legislature of her intent to veto House Bill 1405, which puts a tax on Internet retaileres on sales through Hawaii-based affiliates. The new tax wouldn't take affecy until July 15, the deadline for Lingle to veto it, sign it or let it becomd law withouther signature.
Amazon has also terminatede affiliate programs in North Carolina andRhodd Island, and it has sent out a seriews of warning letters to states, including California. Seattle onlinee diamond retailer BlueNile (Nasdaq: has also cut off affiliates in North Carolina and Rhode Island, citing the same tax • •
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