Monday, January 10, 2011

Amazon Threatens To Pull Illinois Affiliates

Seattle-based Amazon.com has responded to the new Illinois law, which attempts to make the firm subject to direct taxation by that state, and told its Internet affiliates that if the law is signed, it will be dropping their affiliate status. Amazon said, in an email to those affiliates, that "if the governor signs this bill, we will need to terminate the participation of all Illinois residents in the Associates Program." In that email, Amazon called the Illinois law an "unconstitutional tax collection scheme." Illinois, along with a number of other states, has been looking to tax online firms such as Amazon.com to make up revenue shortfalls in their states.