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

Williams Trading Names Lindy Court Sales Representative

Williams Trading has appointed Lindy Court as its new sales representative.

Full Circle Expands 'Be Savage' Line

Full Circle Distribution has introduced 30 new styles from its Be Savage line of lingerie.

Sportsheets to Debut 'Signature' Collection at ANME

Sportsheets will introduce its new Signature collection at the ANME trade show in Burbank next month.

JO Debuts 'Bake Shoppe' Lube Collection

JO has introduced its Bake Shoppe Collection of flavored lubricants.

Dollmora Wellness Now Offering OEJ's Cristal, Zodiac Collections

Dollmora Wellness has partnered with Our Erotic Journey (OEJ), adding the Zodiac and Cristal Collections to its curated catalog of pleasure products.

Aneros Debuts 'Soaker' Cleaning Accessory

Aneros has introduced its new Soaker accessory for cleaning prostate massagers.

Judge Dismisses Last NCOSE-Backed Suit Over Kansas AV Law

A federal judge on Monday dismissed a lawsuit alleging that adult site SuperPorn violated Kansas’ age verification law, citing lack of jurisdiction after similarly dismissing two related cases earlier this year.

ASACP Updates 'Restricted to Adults' Labeling Resource Page

The Association of Sites Advocating Child Protection (ASACP) has updated its Restricted to Adults (RTA) labeling resource page.

Wicked Sensual Care Debuts 'Natural' Lube From 'Simply' Collection

Wicked Sensual Care (WSC) has introduced the new Natural lubricant from its Simply collection.

Playharda Introduces 'Hard Nox' Line

Playharda Wholesale has debuted the Hard Nox collection of pleasure products.

Show More