Amazon.com cuts R.I. business ties
6:39 PM Mon, Jun 29, 2009 | Permalink
Email this author | Email this entry |
 |
Projo Biz Blog |
|
« Group seeks more jobs, faster processing of claims for benefits |
Main
| Union-backed group alleges CVS selling expired goods »
By Steve Peoples PROVIDENCE, R.I. -- The Internet giant Amazon.com has severed ties with all Rhode Island businesses, a move intended to shield the massive online retailer from the General Assembly's push to begin taxing some online sales as soon as Wednesday. An Amazon spokeswoman declined to say how many businesses -- local book dealers and other retailers -- are affected, but confirmed that notification letters were distributed to "many local associates" early Monday morning. Amazon issued a warning letter to legislative leaders Friday suggesting that it would take immediate action unless the state backed off its "tax collection scheme." "The government in Rhode Island is attempting to go about tax collection in what we feel is an unconstitutional manner," company spokeswoman Patty Smith said Monday. The "Amazon tax" -- expected to become law as part of the Rhode Island's state budget on July 1 -- has been proposed in a handful of cash-strapped states, despite a legal challenge in New York. It would essentially force Rhode Islanders to pay a 7-percent sales tax for Internet purchases through out-of-state companies, such as Amazon.com, that have formal business relationships in the Ocean State. While Amazon has no stores in Rhode Island, local businesses earn money by referring sales to Amazon.com. By ending the affiliations, the company will not be required to collect Rhode Island sales tax, according to Smith. Amazon now has terminated business relationships with just two states: Rhode Island and North Carolina. "We are writing from the Amazon Associates Program to notify you that your Associates account has been closed as of June 29, 2009," reads the e-mail Amazon distributed early Monday. "This is a direct result of the unconstitutional tax collection scheme passed by the Rhode Island General Assembly with a veto-proof majority. As a result, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com after June 29." 
|
New comments
New photos
Authors
New posts
Projo blogs
Archives
Leave a comment