State governments across the country are looking for ways to increase state revenues. North Carolina is one of the states considering taxing online revenue as a way to increase state coffers. However their imminent legislation has had some unexpected results. The Motley Fool states,
Amazon is fighting back. It’s threatening to eliminate relationships with all of its affiliates residing in North Carolina before it has to begin adding 4.5% in sales tax to orders placed in that state. The tax is not just a hassle for Amazon; it would put the company at a pricing disadvantage to rival online merchants who don’t run affiliate programs.
With other states looking at similar legislation, this may be the tip of the iceberg.