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

Full Circle Debuts 'Savage Sex Sauce' Lube Collection

Full Circle has introduced its Savage Sex Sauce collection of lubricants.

Texas Court Orders Adult Site Domain Locked for AV Violations

A district court in Texas has issued a writ requiring domain registry Verisign to “lock” an adult website’s domain over noncompliance with the state’s age verification law.

Sustory Debuts 'Rex' Tapered Dildo

Pleasure brand Sustory has introduced its new Rex tapered dildo.

Adult Web Hosting Service 'QloudHost' Launches

QloudHost, a new web hosting service for adult websites, has launched.

Peter Hooke Launches New Paysite

Peter Hooke has launched an official website through PAYSITE.

Kheper Releases New 'Sex Tower' Couples Game

Kheper Games has released its new Sex Tower couples game.

Mylo Unveils New 3-in-1 Massager

Pleasure brand Mylo has debuted its three-in-one massage wand.

Orion Expands 'Bad Kitty' Line

Orion Wholesale has added two sex swings to its Bad Kitty collection of fetish accessories.

Wellness Brand Mila Raises $2.5M in Pre-Seed Funding Round

New sexual wellness brand Mila has raised $2.5 million in pre-seed funding.

Our Erotic Journey to Debut New App, Pleasure Products at ANME

Our Erotic Journey will introduce its new OEJ Remote App as well as six compatible new devices at ANME trade show in Burbank next month.

Show More