Amazon Drops Affiliate Programs in 2 States Citing Taxes

SEATTLE — Amazon has closed its affiliate programs in Arkansas and Connecticut citing tax collection as the reason for the shut down.

The company said contracts with all Connecticut residents who participate in the Amazon Associates Program would be terminated immediately and contracts in Arkansas will terminate July 24, according to a report on CNET.com.

Local governments have tried to force Amazon to pay taxes in states where affiliates are located, although Amazon isn’t required to collect taxes where it has no physical presence.  

The online retailer has already closed affiliate programs in other states such as Illinois, Colorado, North Carolina and Rhode Island and is looking at doing the same in other states.

In letters sent to affiliates, Amazon blamed the budgets signed by the governors in Arkansas and Connecticut that force it to collect tax from online purchases. Because of these new state laws, the company said it was compelled to shut down the affiliate programs.

"We opposed this new tax law because it is unconstitutional and counterproductive," Amazon said in the letter to Connecticut affiliates.

"It was supported by big-box retailers, most of which are based outside Connecticut, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue."

Amazon’s CEO Jeff Bezos said that the way to fix this issue is through federal regulation.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Pineapple Support to Host 'Neurodivergent Performers' Support Group

Pineapple Support is hosting a free online support group for neurodivergent performers.

Orion Debuts 'Suspender Corset' From Cottelli Lingerie

Orion Wholesale has introduced a suspender corset from its Cottelli Lingerie line.

Male Power Debuts Limited-Edition 'Kilauea' Collection

Male Power has introduced its new limited-edition Kilauea collection of men's underwear.

'Legal Impact' Webinar Unpacks North Carolina's New Consent Law

Industry attorney Corey D. Silverstein on Thursday held a webinar focused on North Carolina’s HB 805, a new law that has significantly altered performer consent requirements in the state.

FSC Launches Privacy-First Age Verification Solution for Members

The Free Speech Coalition (FSC) announced today that it has granted members exclusive access to the PrivateAV age verification solution.

Pjur Introduces 'Man Lust' Pleasure Gel

Pjur has debuted its new Man Lust stimulating pleasure gel with spilanthol.

Brazil: New AV Requirements Set to Take Effect March 17

President Luiz Inácio Lula da Silva this week gave final approval to new regulations requiring adult websites to age-verify users located in Brazil starting March 17.

FSC Recommends Platforms Integrate StopNCII.org Tool

In a blog post, Free Speech Coalition (FSC) has recommended that platforms integrate the StopNCII.org tool to prevent the sharing of non-consensual intimate imagery (NCII).

Orion Debuts 'Duo Vibrator' From 'Couples Choice' Line

Orion Wholesale has introduced the Duo Vibrator from its Couples Choice line.

Kheper Releases New 'Reverse Adult Charades' Party Game

Kheper Games has released the new Reverse Adult Charades party game.

Show More