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Amazon Discontinues Affiliate Program for North Carolina

June 29th, 2009 posted by · 4 Comments


Amazon has surprised many affiliates after announcing it would no longer offer its affiliate program to residents of North Carolina.

SAN FRANCISCO — Inc. closed accounts with its affiliates in North Carolina to avoid paying a proposed sales tax, according to media reports Friday. In an email, Amazon reportedly told marketing affiliates in the state that the move was a direct result of North Carolina’s push to levy a tax on purchases made through Amazon affiliates. (

A short time after the North Carolina announcement, Hawaii affiliates received the same news.

What concerns me the most is the bigger story behind this whole issue. What’s next? Could the entire affiliate marketing industry be in jeopardy if local lawmakers push to create new legislation that forces companies to pull out of offering their affiliate programs in specific states? It’s a very scary thought.

In Canada, they’ve already started taxing eBay income for both sellers and affiliates. It’s only a matter of time until they widen their focus to include all Internet-related earnings.

To me, beginning to tax businesses who do business in one’s state is hurting the economy more than helping it. People who are trying to earn a decent living end up being cut off because the government becomes greedy.

How do affiliates feel?

This will actually hurt their sales tax revenues. If I made $1,000 from affiliate programs I’d be spending the money in my home state (and thus paying sales tax on my purchases), and much of that money would continue to stay in the region as it is spent by the retailers I visit…. now that $1,000 won’t even make it into the state in the first place. – Infinitus76

I was very upset when I heard the news as I live in NC. The only good thing for me is that I was not making a lot of money yet through Amazon. Also got a similar email from CJ but not action there yet. It has made me think of moving out of state. – Passive Family Income

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4 Comments so far
  1. brian MyAvatars 0.2

    Having a business which resides in south Charlotte that makes a decent revenue stream from affiliate programs, I’m seriously debating finding an office space right across the border in SC instead. OK, let me clarify that… i’m looking for office space in SC, and if this bill passes, and i find office space, i’m moving my business south of the border.

  2. Joshua MyAvatars 0.2

    It happened 2 days ago to Rhode Island affiliates as well. Today was the last day for RI.

  3. Skip Piper MyAvatars 0.2

    Tax upon tax upon tax ad infinitum.

  4. Bradley Nordstrom MyAvatars 0.2

    FANTASTIC post.By the way Amazon is awesome. :cool: