HARTFORD, Conn. – A growing number of states are considering following the leads of Rhode Island and North Carolina by enacting a so-called “Amazon tax” law in an effort to force the e-retailer to collect sales tax.
Lawmakers in neighboring Connecticut are considering such a proposal, as are legislatures in Georgia, Illinois, Maryland and Virginia.
But in a letter to Connecticut legislators, Paul Misener, Amazon’s vice president for global public policy, warned the company would eliminate ties with Connecticut affiliates if lawmakers pass the measure, just as the company did in Rhode Island, TechFlash reported.
Rhode Island lawmakers argue that because some Rhode Island companies and individuals participate in Amazon Associates, the company’s affiliate program, Amazon therefore has a physical presence in a state and is required to collect the state’s sales tax. Amazon is fighting that argument, most notably in New York’s courts.
Many in the Rhode Island tech community are frustrated that lawmakers refuse to revisit the issue, particularly in the wake of a Providence Business News report last December that the measure has not generated any revenue for the state. General Treasurer Frank T. Caprio, who is running for governor, has called for the Amazon tax to be repealed.
