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

A Look at the Latest Trends in Pleasure Products

Pleasure brands, retailers and distributors with their finger on the pulse of the market are sharing their observations on the latest trends from the past year that are driving sales.

MyMember.site Rolls Out 'TantumPay' Solution

MyMember.site has debuted its TantumPay payment processing solution.

Blush Expands 'Anal Adventures' Collection

Blush has introduced X-Large Anal Beads from its Anal Adventures Collection.

Xgen Debuts '4Play' Collection From Bodywand

Xgen Products has introduced the new 4Play collection of clitoral stimulators from its Bodywand line.

StreamPayments Joins ASACP as Corporate Sponsor

Payment service provider and consultancy firm StreamPayments has signed on as the latest corporate sponsor for Association of Sites Advocating Child Protection (ASACP).

AdultHTML Introduces Custom AI Projects Development Service

AdultHTML has introduced its customizable AI projects development service.

Lovense Debuts 'Fizz' Stimulator

Lovense has introduced its new Fizz dual-head clitoral stimulator.

Eporner Must Face Copyright Suit After Judge Affirms Jurisdiction

A U.S. district court has ruled that it has jurisdiction to hear a copyright infringement lawsuit brought by adult website operators against tube site Eporner, even though Eporner is based outside the United States.

BranditScan Launches Public API, Affiliate Program

BranditScan has launched a public API and a new affiliate program enabling creator platforms to integrate the company’s anti-piracy services and earn recurring commissions.

Hankey's Toys Debuts DiYardieULuv2H8 Silicone Lifecast Dildo

Mr. Hankey's Toys has introduced its newest silicone lifecast dildo, modeled on the anatomy of creator DiYardieULuv2H8.

Show More