By Associated Press Tuesday, June 30, 2009 - Added 4m ago PROVIDENCE, R.I. — Amazon.com has cut ties with Rhode Island Web sites that make referrals to the online retailer because a law designed to collect sales taxes on these transactions will soon come into force, the Providence Journal reported Tuesday. Seattle-based Amazon wrote to Rhode Island Web site operators, telling them its "Associates program" ended Monday. Web sites that posted links to the company about its products have received up to a 15 percent cut on sales. On June 17, the Rhode Island legislature passed a budget provision that would force Amazon to collect 7 percent in sales taxes on these so-called "click-through" transactions. Amazon argues the law is unconstitutional, so eliminating the commission would prevent the company from having to collect the...
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