Amazon Cuts Relationships with North Carolina Affiliates

Amazon carried through with threats to end its relationship with online businesses based in North Carolina Friday, raising the stakes in a game of chicken over online sales taxes. The local businesses, which Amazon calls affiliates, refer customers to the retailer through ads on their own Web sites. Typically, the ads recommend specific books or music. North Carolina lawmakers have proposed applying sales taxes to those transactions, something Amazon says would be unconstitutional. The company won’t specify how many affiliates it has in the state

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