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Amazon Ends Affiliate Program in Illinois

Amazon.com is ending another affiliates program, this time in Illinois, over the state’s efforts to collect sales tax.  Illinois Governor Pat Quinn has signed into law a bill that would require affiliates located in the state to collect state sales tax on purchases made by Illinois residents.  In response, Amazon stated that it would sever those business relationships.  Amazon’s affiliates program allows affiliates to place ads for Amazon on their websites.  Affiliates then receive payment when customers make purchases via the ads. 

Earlier this month, Amazon has threatened to sever ties with more than 10,000 of its affiliates in California if legislation forcing Amazon to collect taxes from Internet purchases is passed.  In addition, Amazon closed its distribution center in Texas after the state claims Amazon owes it $270 million in back taxes with respect of sales it made in Texas.

For additional information, visit:
http://news.cnet.com/8301-1023_3-20042021-93.html#ixzz1GaOTkxBF