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Jul 02 2009
The 'e-fairness' battle is gathering momentum. Rhode Island's govenor has now signed the state's budget becoming the second state after New York to require online retailers with affiliates in the state to collect tax on sales made to in-state residents over the Internet. E-fairness fights appear close to a tipping point in California, Connecticut, Hawaii, and North Carolina.
The legislative progress of Internet Sales Tax provisions has triggered the sudden de-listing of in-state affiliates by Amazon and other online retailers in Hawaii, North Carolina, and Rhode Island.
In 2008, New York became the first state to enact such a provision, legislation that has withstood a legal challenge from Amazon.com and has resulted in $46 million in sales tax revenue from the 30-plus vendors that registered to collect sales tax.
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