Why? Good question. I'll let Amazon explain:
Hello,In short, we live in the wrong state. We've been loyal customers and sellers of Amazon for eleven years, back when people worried that Amazon wasn't turning a profit. They have no interest in paying sales tax on Connecticut's state laws, so we've been cut off -- despite our loyalty, we're just not worth the hassle, apparently.
For well over a decade, the Amazon Associates Program has worked with thousands of Connecticut residents. 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. 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.
We opposed this new tax law because it is unconstitutional and counterproductive. It was supported by big-box retailers, most of which are based outside Connecticut, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.
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. 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.
You are receiving this email because our records indicate that you are a resident of Connecticut. If you are not currently a resident of Connecticut, or if you are relocating to another state in the near future, you can manage the details of your Associates account here. And if you relocate to another state after June 10, 2011, please contact us for reinstatement into the Amazon Associates Program.
To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to Connecticut residents and will not affect their ability to purchase from www.amazon.com.
We have enjoyed working with you and other Connecticut-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to Connecticut residents.
The Amazon Associates Team
On the one hand I understand. The point of a referral system is to make money. We never made that much for Amazon, but we made a decent fare each month -- enough to buy a dinner for two. Not anymore.
On the other, Connecticut's tax on goods sold in partnership is likely the way things are going to go if state budgets remain solvent. I don't necessarily agree with it, but I can understand its application and why in tough times a state might decide to do it.
But practically that means we're done. I've been using Amazon links for so long that it's going to be difficult to stop. I'll still be a reviewer on Amazon (I cling, ever tenuously, to the top 1,000 ranking) but I won't be linking there any longer.
It was fun while it lasted. We're still active of course. You can keep up with us on http://www.facebook.com/dredspace.
See you on the other side!