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Similar to a move made in Illinois a few months ago, Amazon has shut down its Associates program in Connecticut after the state imposed a sales tax measure that would tax any purchases made online starting July 1
If you are not currently a resident of Connecticut, or if you are relocating to another state in the near future, you can manage the details of your Associates account here.
Demaestro, I think you're right that they are implying certain workarounds, of which we are considering some. In this virtual environment, it seems that you can send your links to an account in New Hampshire and that could solve the problem. Amazon isn't the only one doing this, and there's been similar language in the notices from other companies - all of which gave us plenty of notice and helped work with us BTW.
I'm starting to wonder if some General Electric-style accounting is going to become necessary for us Webmasters. Since we can point affilitate links to any account, it might be a matter of making an arrangement with some entity in a state or country where these taxes aren't an issue.
If you're still a resident of CT for tax purposes, but your Amazon 1099 comes to an address in NH (which has no state income tax), then you would still legally owe CT income tax on that earning.
But when you pay it, and CT sees a bunch of Amazon 1099s coming down the pipeline, aren't they just going to claim Amazon's operating in their state