Overstock puts Hawaii affiliates back in business

Online discount retailer Overstock.com Inc. reinstated Hawaii-based Internet affiliate advertisers today, after Hawaii's governor vetoed legislation that would have forced Overstock to collect taxes on sales in that state.

Overstock shut down affiliate programs in several states where lawmakers wanted the Web retailer to collect taxes, even though it has no physical presence there.

Lawmakers argued that because affiliates _ people and businesses that link to Overstock in exchange for a commission on resulting sales _ are in-state, the company should be forced to collect sales tax.

The discount retailer closed down programs in Hawaii, Rhode Island, North Carolina, and in New York, which passed such a law last year.