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Amazon cuts ties with Hawaii affiliates

By Associated Press

POSTED: 10:24 a.m. HST, Jun 30, 2009

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Amazon.com Inc. has cut ties with Hawaii and Rhode Island Web sites that refer customers to the online retailer in an effort to avoid collecting sales taxes in those states.

Seattle-based Amazon notified associates in Rhode Island and Hawaii that the company was no longer working with them as of Monday and today, respectively, because the states have passed laws to collect sales taxes on these transactions.

Amazon believes the legislation is unconstitutional, spokeswoman Patty Smith said.

In the case of Hawaii, Amazon noted in a letter to associates that the governor has until July 15 to veto the bill but that it will be effective as of Wednesday.

"We were forced to take this unfortunate action in anticipation of actual enactment because of the uncertainty and timing of a veto, and the possibility that a veto could be overridden," the notice said. "The governor has until July 15 to veto the bill but, as indicated, the bill has an effective date of July 1."

The company also recently ended its relationship with affiliates in North Carolina because it expects similar tax legislation to be passed there. And Smith said the online retailer has sent letters to the governors and legislatures of California and Connecticut, as well as other states that are considering similar legislation.

Amazon.com Inc. has cut ties with Hawaii and Rhode Island Web sites that refer customers to the online retailer in an effort to avoid collecting sales taxes in those states.


Seattle-based Amazon notified associates in Rhode Island and Hawaii that the company was no longer working with them as of Monday and today, respectively, because the states have passed laws to collect sales taxes on these transactions.

Amazon believes the legislation is unconstitutional, spokeswoman Patty Smith said.

In the case of Hawaii, Amazon noted in a letter to associates that the governor has until July 15 to veto the bill but that it will be effective as of Wednesday.

"We were forced to take this unfortunate action in anticipation of actual enactment because of the uncertainty and timing of a veto, and the possibility that a veto could be overridden," the notice said. "The governor has until July 15 to veto the bill but, as indicated, the bill has an effective date of July 1."

The company also recently ended its relationship with affiliates in North Carolina because it expects similar tax legislation to be passed there. And Smith said the online retailer has sent letters to the governors and legislatures of California and Connecticut, as well as other states that are considering similar legislation.

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