Online retailer Overstock.com drops RI

PROVIDENCE, RI (WPRI) - Online retailer, Overstock.com has dropped its marketing relationships with web sites based in the ocean state.

The company says its dropping the state due to the sales tax-collection requirement included in the budget signed into law Tuesday by Governor Donald Carcieri. Amazon.com made a similar move earlier this week.

Officials for Overstock.com say it sent notices today to its affiliates in Rhode Island, North Carolina, California and Hawaii informing them that its ending its affiliate relationships there rather than begin collecting sales tax from customers in the states.

Rhode Island’s new law requires Overstock, Amazon and other e-retailers to collect taxes on purchases made through the site of a Rhode Island-based author or company. On Monday, Amazon said it was closing the accounts of its affiliates in the state to avoid the mandate.

These changes do not affect shoppers. Rhode Islanders can continue to order products from both Overstock.com and Amazon.com.