Amazon Shuts Down North Carolina Affiliate Program

Amazon completely shut down its affiliate program in the State of North Carolina yesterday, according to a company email, in anticipation of a compulsory, upfront tax on online sales expected to be implemented by the State shortly.

The email reads:
We are writing from the Amazon Associates Program to notify you that your Associates account has been closed as of June 26, 2009. This is a direct result of the unconstitutional tax collection scheme expected to be passed any day now by the North Carolina state legislature (the General Assembly) and signed by the governor. As a result, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com after June 26. We were forced to take this unfortunate action in anticipation of actual enactment because of uncertainties surrounding the legislation’s effective date.
Please be assured that all qualifying referral fees earned prior to June 26, 2009 will be processed and paid in full in accordance with our regular referral fee schedule. Based on your account closure date of June 26, 2009, any final payments will be paid by September 1, 2009.
In the event that North Carolina repeals this tax collection scheme, we would certainly be happy to re-open our Associates program to North Carolina residents.
The North Carolina General Assembly’s website is http://www.ncleg.net/, and additional information may be obtained from the Performance Marketing Alliance at http://www.performancemarketingalliance.com/.
We have enjoyed working with you and other North Carolina-based participants in the Amazon Associates Program, and wish you all the best in your future.

Similar proposals have been defeated or pushed back in some other states, and Amazon is fighting an existing law in New York and a proposed law in California.
The Asheville Citizen-Times quotes one affiliate who says he generates $70,00 to $80,000 per year in income through his Amazon affiliate program and will have no choice to move to another state if that relationship is terminated.