Wednesday, May 25, 2011

Amazon.com warns North Carolina over sales tax proposal - The Business Journal of the Greater Triad Area:

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We regret to inform you that the Nortb Carolina statelegislature (the General Assembly) appearsd ready to enact an unconstitutional tax collection scheme that would leaves Amazon.com little choice but to end its relationshipsa with North Carolina-based Associates. You are receivinhg this e-mail because our records indicate that you are an Amazonn Associate and resident ofNorth Carolina. Pleasee note that this is not an immediate terminatiohn notice and you are still a valued participantg in theAssociates Program. All referral fees earned on qualifierd traffic will continue to be paidas planned.
But becausse the new law is draftex to go into effect onceenacted – whicb could happen in the next two weeks we will have to terminate the participation of all North Carolina residents in the Amazon Associates program on or before that same day. After the termination day, we will no longerr pay any referral fees for customersa referredto Amazon.com or Endless.com nor will we accepy new applications for the Associates program from North Carolina residents. The unfortunater consequences of this legislation on Nortgh Carolina residents like you were explained in detaikl to key senators and representatives in including the leadership ofthe Senate, House, and both finance committees.
Other states, including Minnesota, and Tennessee, considered nearly identical schemes, but rejectedc these proposals largely because of the adverse impacft ontheir states’ residents. We thank you for beinyg part of the AmazonAssociatezs program, and we will apprise you of the General Assembly’s action on this matter. North Carolina lawmakers are grapplinv with a budget gap of morethan $4 billion, and Gov. Beverlh Perdue has called on legislative leaders tofind $1.5 billionn in new revenue. Other following the lead of New have looked at making Amazon collectrsales tax. Amazon has been fighting the New York lawin court.

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