The e-tailing giant said it was taking the steps because of the "unfavorable regulatory climate" in Texas.
The Texas state comptroller's office had sought to get Amazon to pay $269 million in what it claimed was unpaid sales taxes plus penalties.
Allen Spelce, a spokesperson for Comptroller Susan Combs, told the Austin-American Statesman, "We regret losing any business in the state of Texas," while adding, if you have a business presence in the state of Texas, you're no different than any other business in the state of Texas, and you still owe sales tax."
Texas Governor Rick Perry was critical of the action taken by the comptroller.
While the politics play out in Texas, Barnes & Noble is looking to gain an advantage with an invitation to Amazon affiliates to join its network.
John Foley, president of Barnes & Noble.com, wrote in an open letter published yesterday, "Barnes & Noble wants Amazon.com affiliates who have been terminated to know that you are welcome to join the Barnes & Noble affiliate family. If Amazon doesn't want you, we do! And, we will take care of collecting and remitting all sales taxes due on BN.com sales to its customers so you and our customers don't have to worry about being hassled or prosecuted by state tax auditors."
Danny Diaz, a spokesperson for the Alliance for Main Street Fairness (AMSF), an organization of retailers supporting laws that would require all to collect sales taxes, said in a statement, "Today, Barnes & Noble made clear the difference between a company that cares about small businesses and conducts itself as a good corporate citizen versus another that is more interested in exploiting a loophole that gives it an unfair, competitive advantage over brick-and-mortar retailers throughout the country."