Blue Nile Ends RI Affiliates Over Sales Tax

Jewelry e-retailer Blue Nile Inc. has ended its referrals from Rhode Island based affiliates because of legislation that would require the collection of sales tax, Internet Retailer reported. The step follows a similar action in North Carolina.

Blue Nile told its Rhode Island affiliates that it regrets the need to take this action. “As the U.S. Supreme Court’s 1992 Quill decision makes clear, the proposed bill is unconstitutional as it requires sellers with no physical presence in the state to collect sales tax on sales to buyers in that state.”

The diamond jewelry retailer said it will re-instate its affiliate programs in Rhode Island and North Carolina if the states terminate the tax collection schemes. “We remain hopeful that this unconstitutional legislation will ultimately be rejected, at which point we would be happy to resume working together,” Blue Nile said in its letters to affiliates in both states.