In an email from Amazon sent to Missouri residents in the associates program it says, 'We are writing from the Amazon Associates Program to notify you that your Associates account will be closed and your Amazon Services LLC Associates Program Operating Agreement will be terminated effective August 27, 2013. This is a direct result of the unconstitutional Missouri state tax collection legislation passed by the state legislature and signed by Governor Nixon on July 5, 2013, with an effective date of August 28, 2013. As a result, we will no longer pay any advertising fees for customers referred to an Amazon Site after August 27 nor will we accept new applications for the Associates Program from Missouri residents.'
Amazon is referring to
Missouri Senate Bill 23 (PDF), which requires Internet businesses with affiliate programs in Missouri to collect sales tax as if they had physical facilities there as part of an ‘Amazon Tax’. Missouri joins Arkansas, California, Colorado, Connecticut, and a number of other states in imposing affiliate tax laws and having Amazon promptly terminate doing affiliate business there.
The question that comes to mind is, if states are imposing taxes on internet sales from large distributors and they comply by shutting off affiliates in those states, what is to keep the states from going after app sales as well - thus resulting in those distributors not allowing apps submitted by developers in certain states?