Amazon.com's affiliates in North Carolina are reporting that the company will shut them off if legislation passes that would force online retailers to collect the state's 4.5% sales tax from marketing affiliates. The News & Record newspaper reports that the tax law change is part of an effort to close a $4.7 billion hole in the state budget. "To help bridge that gap, House lawmakers proposed a bevy of tax increases and new taxes to raise about $784 million."
The Wall Street Journal quoted an Amazon.com spokesperson as saying the company believes the way North Carolina is going about collecting the sales tax is unconstitutional. The Makovision blog has the text of the email Amazon.com sent to affiliates on Wednesday.