RALEIGH, NC – Amazon.com ended its partnerships with NC Associates who drive buyers to its site Wednesday so that it would not have to withhold taxes on NC sales.
Amazon said it is ending its relationships with its NC Associates, who receive modest commissions on sales referrals.
At least one NC entrepreneur told the Raleigh News & Observer that he would move the online business he runs with his wife out of state, “taking our business and all the income taxes we’re paying with us.”
Amazon sells many products other than books and online entrepreneurs who run review sites for electronic devices or other products will also suffer. Amazon Associate income provides a significant amount of revenue to many of those sites.
The state maintains it needs the new taxes to meet budget shortfalls caused by the economic downturn.
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