Overstock.com is canceling services of its affiliate advertisers in Hawai�i and three other states following the legislature�s passage of a law requiring Internet retailers to collect taxes if they have local affiliate advertisers.

Overstock�s move mirrors that of Amazon.com, which sent termination letters to its owners of Web sites in Hawai�i who post Amazon.com ads on their sites and get a referral fee if visitors click through and make a purchase.
Gov. Linda Lingle yesterday indicated she may veto the legislation on collecting taxes on purchases made from an affiliate referral.