Amazon.com Inc. has informed its marketing affiliates in Hawaii that it is ending its business with them in order to avoid collecting sales tax in the state.
Following in the footsteps of North Carolina and Rhode Island, lawmakers in Hawaii have passed legislation that would require companies to collect sales tax if they have marketing affiliates in the state. Affiliate marketers run blogs or Web sites and get a sales commission by featuring links to outside e-commerce sites.
Hawaii’s governor has until July 15 to potentially veto the legislation, but it has an effective date of July 1.
Source: Geoffrey A. Fowler, The Wall Street Journal
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