The end of Amazon Associates Program?

Posted at June 29, 2009

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Bad news for Amazon’s North Carolina and Hawaii affiliates.

Amazon.com Inc. closed accounts with its affiliates in North Carolina to avoid paying a proposed sales tax, according to media reports Friday. In an email, Amazon reportedly told marketing affiliates in the state that the move was a direct result of North Carolina’s push to levy a tax on purchases made through Amazon affiliates.

Ahead of pending advertising tax legislation, Amazon took a preemptive strike by dropping affiliates effective immediately. They took this action early because the date the laws go into affect is unclear and the affiliate program must be closed to state affiliates PRIOR to the law passing or a presumption of nexus will be established.

If you aren’t familiar with the advertising tax (Amazon tax) issue, you can catch up on all the coverage here.

California and several other states have similar legislation pending.

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