Amazon Cuts Off Hawaii Associates

Aloha means goodbye in the case of Amazon and Amazon Associates in the state of Hawaii.

Following in the footsteps of North Carolina and Rhode Island, the Hawaii legislature passed a law that would require Amazon to collect and pay sales taxes from any Associates with mailing addresses in that state, The Wall Street Journal reported.

And following in its own footsteps, Amazon did the same thing it did with North Carolina and Rhode Island: The online retailer cut off all Associate payments to the state, Silicon Alley Insider reported.

ZDNet’s Larry Dignan told Silicon Alley Insider the move will likely have little effect on Amazon’s sales, adding that the online retailer is hoping the small hit it takes now will help it to reverse state laws.

Silicon Alley Insider pointed out that Amazon continues to pay Associates in New York, meaning sales from that state are too high to risk losing.