Traditionally, transactions that do not take place _within_ a particular state are not taxed by that state's sales taxes. (Edit: That does not mean the recipient shouldn't pay Use Taxes - In California, our (Edit: Out of state) Online Vendors don't charge us sales tax, but we still owe Tax to the State of California as a business - see http://www.ftb.ca.gov/current/usetax.shtml)
North Carolina is trying to tax a transaction taking place on the "internet." Amazon's response is not unexpected.
The Net-effect of the North Carolina tax legislation may be to drive a lot of economic activity out of their state, including the referral income which was previously subject to North Carolina state income taxes.
North Carolina is trying to tax a transaction taking place on the "internet." Amazon's response is not unexpected.
The Net-effect of the North Carolina tax legislation may be to drive a lot of economic activity out of their state, including the referral income which was previously subject to North Carolina state income taxes.