We've been tracking the affiliate tax debacle involving Amazon and the state of North Carolina. Now, affiliates in more states are being affected.
Associates in Rhode Island and Hawaii are receiving emails notifying them of the cancellation of their affiliate accounts. Rhode Island passed a bill making affiliates consist of a physical location for web retailers, which forces them to pay sales tax in the state. Hawaii is considering a similar bill.
Blue Nile, a diamond company has also shut down its program to Rhode Island residents.
On the horizon is the state of California, another state considering an affililate tax bill, sometimes referred to as affiliate nexus.
New York was the first state to pass such a bill, which went into effect last summer. 200 affiliate programs were canceled for New York residents as a result.