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Edition: U.S. Article Comments (1) Follow Reuters Facebook Twitter RSS YouTube Read Senator describes "gruesome" bin Laden photos 11 May 2011 Rapper attends White House event despite criticism 11 May 2011 Do bedbugs carry superbugs? 11 May 2011 Libyan TV shows first film of Gaddafi in two weeks | 12:06am EDT Cisco warns of sales miss, eyes $1 billion savings 11 May 2011 Discussed 148 Obama at U.S. base to pay tribute to bin Laden mission 129 Boehner demands trillion-dollar cuts in debt deal 110 Son says bin Laden sea burial demeans family: report Watched Deadly earthquake rocks Spain Wed, May 11 2011 Commodities sink as dollar rebounds Wed, May 11 2011 Russia 'shot down Georgia' drone Mon, Apr 21 2008 Amazon could cut ties in more states over tax dispute Tweet Share this By Dhanya Skariachan NEW YORK (Reuters) - Amazon.com could cut its partnership with affiliates in more U.S. states that require the online retailer to collect sales tax, Chief Executive Jeff Bezos said on Wednesday. The comments from the world's... Email Print Related News Battle lines harden in budget talks Tue, May 10 2011 Appeals court questions Obama healthcare lawsuit Tue, May 10 2011 Google launches music service without labels Tue, May 10 2011 Democrats, Republicans edge closer on debt deal Thu, May 5 2011 South Korea police probe Google over location data collection Tue, May 3 2011 Analysis & Opinion Do higher taxes encourage tax avoidance? Consumer groups embrace “do not track” bill Related Topics Technology » Stocks Jeff Bezos, CEO of Amazon.com Inc., holds an interview with Reuters next to a Kindle in Cupertino, California, October 6, 2009. Credit: Reuters/Kim White By Dhanya Skariachan NEW YORK | Wed May 11, 2011 5:13pm EDT NEW YORK (Reuters) - Amazon.com could cut its partnership with affiliates in more U.S. states that require the online retailer to collect sales tax, Chief Executive Jeff Bezos said on Wednesday. The comments from the world's largest online retailer come less than a month after brick-and-mortar rival Best Buy expressed optimism about potential online taxation reforms that would expand the collection of sales taxes on items bought over the Internet. Many traditional chains such as Best Buy and Sears have openly voiced their concerns about online-only retailers like Amazon getting an unfair advantage by not having to collect sales tax in states where it does not have a corporate presence. Lawmakers in states -- many facing huge budget deficits -- have also argued that Amazon has a duty to collect tax because its "affiliates," or independent Web operators which are paid a fee when they drive traffic to Amazon that results in a sale, operate in the state. Amazon has already announced plans to cancel its affiliate program in Illinois in response to the state's new law to target online retailers that have affiliates in the state. Texas is considering taxing online sales and California, which already passed legislation that was vetoed, is considering another bill. Last October, Amazon also got a $269 million bill for uncollected sales taxes from the state of Texas. "We will continue to drop states who pass those affiliate laws, from the affiliate program," Bezos said at the ShopSmart Shopping Summit in New York on Wednesday. "In the U.S., the constitution prohibits states from interfering in interstate commerce," Bezos said, citing a U.S. Supreme Court case decades ago that clarified that "mail order" companies could not be required to collect sales tax in states where they did not have "nexus." Bezos said the issue highlighted the need to simplify the existing sales tax system. "The sales tax collection is very complicated," Bezos said. "The right place to fix this is with federal legislation." (Reporting by Dhanya Skariachan; Editing by Tim Dobbyn) Technology Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (1) AdamSmith wrote: These proposed sales taxes, like all sales taxes, are regressive in nature. They take a far more burdensome bite out of the annual incomes of poor and middle class consumers than of the wealthy, who hardly feel them. Sales taxes on online transaction would make the American economy less efficient AND less fair. May 12, 2011 2:23am EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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