Jun 30, 2009
Story Timeline: 146 days
The Internet retailer cuts ties in two states with websites that advertised Amazon and received referral fees; otherwise, legislation would require it to collect sales taxes from customers there. As revenue-hungry states eye Internet retailers as possible sources of new taxes, Amazon.com Inc. is firing back. Already, the nation's largest Internet retailer has cut ties with its affiliate websites in two states to avoid legislation that would require the company to collect sales taxes from its customers there. And it is fighting similar tax proposals in several other states, including California. At issue is the company's Associates Program, which lets thousands of small businesses earn money by posting ads for Amazon and its products on their websites. If a consumer clicks through and buys something, Amazon gives a referral...
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