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Amazon Cuts Off Another State

Jeanine Poggi

06/29/09 - 05:42 PM EDT

Do not piss off Amazon.com(AMZN Quote). Mess with Amazon.com, you get the horns. Hell hath no fury like an Amazon.com scorned.

However you care to characterize the company's wrath, its latest victim is the state of Rhode Island -- which is being cut off by online retailer after its legislature passed a bill that would have required Amazon to begin collecting sales tax.

The online retailer ended its Rhode Island affiliate program just days after it ended its North Carolina affiliate program for the same reason.

Amazon, it's worth noting, decided to keep its affiliate program in New York when it passed a similar bill last year.

Currently Amazon only collects sales tax in a handful of states, and some say it's taking advantage of a loophole for online retailers.

Rhode Island and North Carolina want to classify Amazon as a retailer with a physical presence, making it responsible for collecting sales tax.


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