Amazon.com cuts off affiliates in Rhode Island

Amazon.com cut ties with its Rhode Island business affiliates after the state's assembly passed legislation requiring the Internet retailer to collect taxes.

Amazon sent a notice to the affiliates Sunday night, said Patty Smith, a spokeswoman for the Seattle-based company. Amazon did the same thing to North Carolina affiliates last week over similar legislation in that state.

The company is also fighting tax proposals in California, Connecticut and Hawaii, arguing that Amazon shouldn't have to pay taxes in states where it doesn't have a physical presence. It has sent letters to lawmakers in those three states, Smith said. It hasn't cut off business with them yet, she said.

The affiliate program, called Amazon Associates, lets Web site owners make money by posting ads for Amazon's products. The company pays them a referral fee of as much as 15 percent if someone clicks through and buys something.

"In the event that Rhode Island repeals this tax-collection scheme, we would certainly be happy to reopen our Associates program to Rhode Island residents," Amazon said in its notice to the affiliates.

Amazon said it's not against a sales tax that's the same across every state. The company is opposed to individual states crafting a patchwork of different standards, Smith said.

Amazon stock closed down 85 cents, or 1 percent, at $83.03 Monday. The shares are up 62 percent so far this year.