[RootbeaR]

"Last week, Amazon decided to cut off North Carolina affiliates due to proposed legislation that would have affiliates (really, advertisers) be considered as local "employees" for the sake of proving that Amazon had a business "nexus" in the state, and thus need to collect state sales tax there. It appears similar legislation is popping up across a bunch of states, and Amazon is cutting off affiliates one by one. Affiliates in both Hawaii and Rhode Island have been told that they can no longer sell via Amazon over this issue. It'll be interesting to see if any states back down. Pissing off a bunch of small business owners who make money selling products via Amazon probably isn't a particularly wise thing to do in the middle of a recession."
http://techdirt.com/articles/20090630/2326505419.shtml

[RootbeaR]

The seesaw battle between online retailers and states over sales tax collection swung in favor of the retailers as governors in California and Hawaii used their veto power to block pending legislation to tax sales affiliates in their respective states.