Calif. Passes Law Requiring Online Retailers to Charge Sales Tax

SACRAMENTO — California has become the latest state to be dropped from Amazon’s affiliate program, less than two weeks after Amazon took the same action with affiliates in Arkansas and Connecticut because of tax reasons.

Amazon reportedly dropped California affiliates after Gov. Jerry Brown passed a portion of the state budget that would require large out-of-state Internet retailers with affiliates in the state to collect taxes from customers who reside in California.

The law would require online businesses with affiliates in California to report and pay sales tax. But there are exceptions to the law. Small businesses that recorded less than $500,000 in revenue for the last 12 months, wouldn’t be subject to the law, provided that “total cumulative sales price from all of the retailer’s sales” didn’t exceed $10,000.

In a letter to its California affiliates, Amazon said that it opposed the law because it is “unconstitutional and counterproductive,” according to the LA Times.

Smaller business owners say they will be hurt by the new law because it will result in a loss of jobs and revenue.

The new tax collection requirement is expected to raise an estimated $317 million a year in new state and local government revenue.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Honey Play Box Debuts 'Kai Pro' Stroker at EroSpain

Honey Play Box introduced the new Kai Pro stroker at the 2026 EroSpain trade show in Barcelona.

Adam & Eve Reveals Results of 'Masturbation' Survey

Adam & Eve has released the results of a survey asking respondents about their level of satisfaction from masturbating.

Lovense Reveals Results of 'Prostate Pleasure' Survey

Lovense has published the results of a survey on men’s reluctance to explore prostate pleasure.

Pornhub Launches Lesbian Site 'Pornhub Sapphic'

Pornhub has launched Pornhub Sapphic, a site dedicated to female and non-binary content and creators.

Kiiroo Debuts 'Keon 2' Stroker

Kiiroo has unveiled its new Keon 2 Stroker.

Brazil Invites Public Input on AV Guidelines

Brazil’s National Data Protection Authority (ANPD) on Friday launched a public consultation on developing guidelines for age verification mechanisms under the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

WSST Partners With OEJ to Launch 'Cristal Collection'

We Sell Sex Toys (WSST) has partnered with Our Erotic Journey (OEJ), adding the Cristal Collection to its curated catalog of pleasure products.

E-Stim Introduces 'The Slider' System

E-Stim Systems has introduced The Slider insertable electrode system.

Orion Expands 'Bad Kitty' Line

Orion Wholesale has added two new chain collars to its Bad Kitty collection of fetish accessories.

Eldorado Releases 2026 Lingerie Catalog

Eldorado Trading Co. has released its 2026 Lingerie Catalog.

Show More