Posted by Larry Dignan @ 3:18 am Amazon is in a high-profile tax showdown with states over its Associates referral program and is likely to come out a winner either way. Amazon has pulled its Associates program, which allows Web site operators to drive sales to the e-tailer in exchange for commissions of up to 15 percent, in North Carolina and Rhode Island. States are hurting for revenue and are trying to force Amazon to collect sales taxes on its associates. Simply put, states are trying to treat associate Web sites as if they are physical assets of Amazon. Amazon’s response: Cut out associates in the states where tax bills are proceeding. Providence Business News reported that Amazon cut its ties with business affiliates in Rhode Island over a bill that would force it to collect sales tax on referrals via authors or... [read full story]
