It’s rare when affiliate marketing makes the mainstream news, but Amazon.com is big business, so when Amazon shut down all their affiliates living in Colorado, it became national news.
As ZDNet says
The states are eyeing Internet retailer taxes as a way to balance budgets and giants like Amazon are in the crosshairs. The latest state tax battleground is Colorado, but the fight is likely to spread.
Amazon’s response to Colorado’s state tax issue—Governor Bill Ritter signed a bill that puts new restrictions and taxes on out-of-state retailers like Amazon—has been consistent. When things go against Amazon the retailer cuts its affiliate programs in that state.
Funny, Colorado affiliates get screwed while customers in Colorado can continue to purchase and not pay sales tax. It’s the Colorado customers who continue to purchase and not pay sales tax who are the issue for the state, not the affiliates, but the affiliates are axed so Amazon can say they don’t have any “retail outlets” in the state.