[June 10, 2011] Amazon ending business relations in Connecticut because of online sales tax Tweet Jun 10, 2011 (Connecticut Post - McClatchy-Tribune Information Services via COMTEX) -- Online bookseller Amazon has sent emails to small partner retailers in Connecticut telling them they will be ending their relationship because of the controversial online sales tax passed by the state legislature. The Seattle-based online bookseller has severed relationships with small partner retailers in other states over the tax. The affiliates sell items through Amazon or link to Amazon on their own websites. On the final day of the legislative session Wednesday Kevin Sullivan, head of the Department of Revenue Services, said his agency has not heard anything from Amazon.com since lawmakers passed the controversial online sales tax. A reader, Jim Cameron, sells books through his website "CT Yankee Books", forwarded the email to Hearst Connecticut Newspapers. Cameron said in his email, "For a few years now I've had a hobby of collecting and re-selling old books online. Today, I was put out of business." The subject of the email read, "Notice of Contract Termination Due to New Connecticut Law," and it was signed by the Amazon Associates Team. "Unfortunately, the budget signed by Governor Malloy contains a sales tax provision that compels us to terminate this program for Connecticut-based participants effective immediately," the email said. "It specifically imposes the collection of taxes from consumers on sales by online retailers -- including but not limited to those referred by Connecticut-based affiliates like you -- even if those retailers have no physical presence in the state." Nick Uva, a pastor in Greenwich, tweeted that he had also received the email from Amazon. "What Connecticut gains in sales tax they may lose in reduced income tax from people like me," said Uva in the tweet. Amazon said in the email that it opposes the new tax because it is unconstitutional and counterproductive. "As a result of the new law, contracts with all Connecticut residents participating in the Amazon Associates Program will be terminated today, June 10, 2011," the email stated. "Those Connecticut residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before today, June 10, 2011, will be processed and paid in full in accordance with the regular payment schedule." In late May, Overstock.com pulled its business out of Connecticut. Both companies, and others, would be subject to the state's sales tax as part of the budget, which will go into effect on July after being passed by the General Assembly and signed into law by Gov. Dannel P. Malloy. Overstock and Amazon both lobbied against the bill. In its email to affiliates, Amazon said that the bill was supported by "big box retailers". A statement from Amazon was not immediately available. Check back for more information later. To see more of the Connecticut Post, or to subscribe to the newspaper, go to http://www.ctpost.com/. Copyright (c) 2011, Connecticut Post, Bridgeport Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com. [ Back To TMCnet.com's Homepage ]