More states are requiring the internet giant to collect sales tax and Amazon has responded by cutting ties. Following closely on the heels of last week’s Connecticut announcement was a similar announcement affecting Arkansas.
Amazon made it clear late last week that it would respond to Arkansas’ new tax law by ending its relationship with its partners in the state. This law, which had been on the books since April, has not yet taken effect. It would force Amazon and other web retailers to collect Arkansas state sales tax if the web retailer has affiliate partners in the state.