It is not the first time Amazon cancels their Affiliate programs in certain States due to new Tax Regulations. This time Amazon cancels the Affiliate Program in the State of Colorado. Previously Amazon canceled Affiliate Program in the State of North Carolina and Rhode Island. This means that Peter Griffin, Glen Quagmire and Joe Swanson are not eligible to participate in Amazon Affiliate Program.
From Amazon.com Associates Agreement:
In addition, if at any time following your enrollment in the Program you become a resident of Colorado, North Carolina or Rhode Island, you will become ineligible to participate in the Program, and this Operating Agreement will automatically terminate, on the date you establish residency in that state. In addition, you must promptly notify us in writing of your Colorado, North Carolina or Rhode Island residency, which you may do via the Contact Associates Customer Service form available here.
Starting June 1st, 2008 Amazon started collecting sales tax for any orders shipped within the State of New York. Amazon threatened to cancel Affiliate Program but opted to collect the sales tax. Amazon has filled a lawsuit challenging the constitutionality of the Tax Regulations.
The State of California is considering a bill that requires out-of-State online retailers to collect sales Tax for any fulfilment within the Sate of California. If and when such bill passed by California Government, Amazon has to reconsider its business strategy considering the large amount of sales generated by its Affiliate Programs.
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Disclaimer
37prime participates in Amazon Affiliate Program.