Bue Nile has decided to forgo working with its local affiliate websites in North Carolina and Rhode Island, as the states are now imposing sales tax on online purchases in their vicinity. Previously, online purchases were exempt from local tax. The retailer stated in its media announcement that the tax imposition was unfair.
The tax imposition is gaining reactions from other online retailers as well, like Amazon.com which will end its association with its local counterparts in the two states as well as Hawaii. Tax imposition is the outcome of the economic slowdown, reports say.