Word is going around on Twitter today that Amazon has sent out emails to its Connecticut affiliates. Amazon has booted all Connecticut residents from its affiliates programs following a new budget policy bill that was passed on Tuesday.
The new bill includes a number of tax measures which are design to close the gaping deficit between the state’s income and expenditures. One component is the so-called “Amazon tax”, which targets web retailers with affiliates in the state. The law defines the affiliates as a presence in the state and requires the web retailer to collect Conn. state sales tax. On a related note, Amazon is only the latest web retailer to cut its ties with Conn.; Overstock. com did the same last week.
It’s a pity that Conn. didn’t pay attention when other states (Colorado, for example) tried this same measure. Conn. would have noticed that Amazon cut ties in Co, and that there was nothing to stop Amazon from dropping the Conn. affiliates as well. Connecticut lost the income that the affiliates were generating and gained nothing for it.