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

Pearl Industry Network Launches 'TrustLink' Verification Platform for Creators

Trade group Pearl Industry Network (PiN) has launched TrustLink, its free verification platform for creators.

UPDATED: Supreme Court Rejects Tariffs, Trump Responds

The U.S. Supreme Court on Friday ruled against the Trump administration’s sweeping tariffs, which have significantly impacted the pleasure industry, prompting the president to announce a new tariff strategy as a workaround.

FSC Updates Complaint in Tennessee AV Case, AG Motions to Dismiss

The Free Speech Coalition this week filed an amended complaint in its lawsuit challenging the Protect Tennessee Minors Act as unconstitutional, in response to which the Tennessee attorney general motioned for dismissal of the case.

Better Life Science Launches 'Affiliate and Influencer' Initiative

CLIA-certified laboratory network Better Life Science has launched its affiliate and influencer program.

Nasstoys Names Meghan Beck Vice President of Sales and Operations

Nasstoys has appointed Meghan Beck as its new vice president of sales and operations.

Cherie DeVille Joins Woodhull Freedom Foundation 'Free Speech' Panel

Multi-XMAs winner Cherie DeVille will join the upcoming Woodhull Freedom Foundation panel series "Fact Checked by Woodhull," addressing free speech on Feb. 26.

Hankey's Toys Debuts Krave Melanin Silicone Lifecast Dildo

Mr. Hankey's Toys has introduced its newest silicone lifecast dildo, modeled on the anatomy of performer Krave Melanin.

Wisconsin AV Bill Moves Ahead, Minus Anti-VPN Provisions

The Wisconsin state Senate on Wednesday advanced a bill that would require adult websites to verify the ages of users, but approved an amendment striking proposed language that would have required sites to block virtual private network traffic.

Uncover Creations Launches Product Design Competition

U.K. pleasure brand Uncover Creations has launched its second Design a Grinder product design competition.

Pineapple Support Introduces 'Wellbeing by PS' Service

Pineapple Support has debuted its new Wellbeing by PS service, providing mental health support packages for companies and agencies.

Show More