The online retail giant ended another affiliate program, this time in Hawaii, to avoid collecting sales tax.
Earlier in the week, Amazon also
, and has made similar threats to California.
Online diamond jeweler,
, followed Amazon's lead and also announced on Tuesday that it ended its affiliate programs in North Carolina and Rhode Island.
Amid the recession, cash-strapped states are passing legislation that would allow them to collect sales tax on e-commerce sites not actually physically located in the state. Not charging state tax has become an advantage for online retailers.
State governments could generate $3 billion in new revenues if Web retailers had to collect taxes on all sales to consumers, according to Forrester Research.
Last year New York passed a similar law, which Amazon and
unsuccessfully challenged. Overstock dropped affiliates in New York, while Amazon decided to stick with its program there.
Other than New York and its home state of Washington, Amazon collects sales tax in states where it has a physical presence, which are North Dakota, Kentucky and Kansas.
Amazon and Blue Nile use affiliates, as well as Google ads and links on comparison shopping sites, to drive traffic. But the elimination of these affiliate programs is expected to have a minor impact on Amazon, as it's only a small portion of the company's total sales.
Amazon will not reveal how many affiliates it has, but it is reportedly in the thousands.
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