Amazon.com Gets Rid of Affiliate Program in State of Illinois

Amazon.com offers one of the highest rated and popular affiliate programs on the Internet, through their Amazon Associates.  I found out about this actually through purchasing an investment website, and the seller was selling because he was a resident of Illinois and his website revenue have plummeted because of this phenomenon.  Apparently, the state of Illinois imposed a mandatory sales tax on Internet retailers including Amazon.com, even though the company is not based within that state, compelling Amazon to pull their Amazon Associates program from the state.  This means that online retailers based outside of Illinois must make the decision between excluding the state from your sales, or  serve the state but take a hit in profit margins.  What this also meant for thousands of Amazon Associates affiliates is their hard work income has either be terminated or greatly reduced (if they moved to a temporary advertisement network).  Below is the letter that Amazon sent to their Illinois residents:

Hello,
For well over a decade, the Amazon Associates Program has worked with thousands of Illinois residents. Unfortunately, a new state tax law signed by Governor Quinn compels us to terminate this program for Illinois-based participants. It specifically imposes the collection of taxes from consumers on sales by online retailers – including but not limited to those referred by Illinois-based affiliates like you – even if those retailers have no physical presence in the state.
We had opposed this new tax law because it is unconstitutional and counterproductive. It was supported by national retailing chains, most of which are based outside Illinois, 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 its enactment forces this action.
As a result of the new law, contracts with all Illinois affiliates of the Amazon Associates Program will be terminated and those Illinois residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, or SmallParts.com. Please be assured that all qualifying advertising fees earned prior to April 15, 2011 will be processed and paid in full in accordance with the regular payment schedule. Based on your account closure date of April 15, 2011, any final payments will be paid by July 1, 2011.
You are receiving this email because our records indicate that you are a resident of Illinois. If you are not currently a permanent resident of Illinois, 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 April 15, please contact us for reinstatement into the Amazon Associates Program.
To be clear, this development will only impact our ability to continue the Associates Program in Illinois, and will not affect the ability of Illinois residents to purchase online at www.amazon.com from Amazon’s retail business.
We have enjoyed working with you and other Illinois-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 Illinois residents.
Regards,
The Amazon Associates Team