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

Lauren Phillips, Derek Kage Cap AEBN's Top 100 Stars of 2025

AEBN has revealed its top 100-selling stars of 2025 in both gay and straight theaters.

Starship Introduces New Wellness, Pleasure Product Lines

Starship has debuted its new On My Mind lubricant line and Devil Got Bound bondage collection.

Eldorado, Paradise Ink US Distro Deal for 'Art of Illumination' Collection

Eldorado Trading has inked an exclusive U.S. distribution deal with Paradise Pleasure Products for the new Art of Illumination collection of pleasure products.

Sliquid Expands Massage Oil Collection

Wellness brand Sliquid has introduced two new scented oils to its Massage collection.

Nexus Debuts 'Ascend' Rotating, Thrusting Massager

Nexus has introduced its new Ascend thrusting and rotating massager.

Lovense Debuts 1st 'AI Companion' Love Doll

Lovense has introduced its first AI Companion Doll at the 2026 Consumer Electronics Show (CES) in Las Vegas.

Former IEAU Officer Sentenced to 4 Months

Amanda Gullesserian, who performed in the industry under the name Phyllisha Anne and founded the now-defunct International Entertainment Adult Union (IEAU), has been sentenced to four months’ imprisonment for making a false statement in an IEAU federal financial report.

Male Power Debuts 'Eggplant' Collection

Male Power has introduced its new Eggplant collection of men's underwear.

Nexus Introduces Automatic Anal Douche

Nexus has debuted its new Automatic Rotating 360-degree anal douche.

Orion Debuts 'Three in a Row' Dildo Set From 'You2Toys' Line

Orion Wholesale has introduced the new three-piece dildo set Three in a Row from its You2Toys line.

Show More