Friday, March 11, 2011

Amazon Terminates Affiliate Program In Illinois After New Tax Law

Amazon is terminating its affiliate marketing program in Illinois after the state passed a new law requiring ecommerce companies like Amazon to charge sales tax in the state, even if they have no physical presence there.

Amazon's nationwide associates program lets anyone earn money for referring customers to Amazon, and it is said to be a significant source of income for many small web publishers.

Ironically, the law is supposed to protect small in-State mom-and-pop businesses from larger retailers such as Amazon. Amazon has faced similar laws in a few other states, and typically dissolves all in-State marketing affiliations when such laws are passed.

One might cynically note that such laws are supported by Amazon's competitors (large national chains) and obviously by tax collection interests. But the unintended consequences always seem to include damage to some local businesses who are Amazon affiliates.

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