It seems like only yesterday we were reporting that, due to California’s legislature (among others) being poised to pass a tax on affiliate programs (which some were also calling an “advertising tax”) such as those run by Amazon and Overstock, these and other companies were resorting to dumping the affiliates in those states and that, in fact, Overstock had just dumped all of their California affiliates for that very reason. In fact, it was yesterday. And in response, California Governor Arnold Schwarzenegger vetoed the tax increase which the California legislators had passed, including the problematic affiliate tax provision.

Following in New York’s footsteps, North Carolina is set to enact a similar Amazon Affiliate Tax, by which we mean that sales generated by someone in North Carolina via an affiliate program will be taxed (New York enacted an affiliate sales tax last year, over which New York was promptly sued).