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 © 2025 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

FSC Publishes Guidance on Google Analytics Lawsuits

The Free Speech Coalition (FSC) has published guidance on how adult websites can protect themselves in the wake of several consumer class action lawsuits filed against sites for using Google Analytics.

Onahole Debuts New 'Aska Mai' Love Torso

Pleasure brand Onahole has introduced its new Aska Mai love torso.

BranditScan, CreatorTraffic Partner for 'Creators & Agencies' Initiative

BranditScan and advertising network CreatorTraffic have partnered for an initiative to help creators and agencies generate traffic and protect their content.

Nothosaur Marks Pride Month With Rainbow-Colored Pleasure Products

Pleasure brand Nothosaur has introduced its rainbow color series of fantasy dildos for Pride month.

ULoversDoll Debuts Transgender Love Dolls

ULoversDoll has introduced a new line of transgender dolls from its Dolls Castle collection.

Teasy Agency Joins Pineapple Support as Supporter-Level Sponsor

Teasy Agency has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

Unpacking the Pleasure Industry's Friend-or-Foe Status With Mainstream Outlets

Over the years, pleasure products have increasingly made their way into big-box stores and mainstream marketing channels. As a result, brands now face a complicated balancing act.

We-Vibe to Launch Retail Summer Sales Contest

We-Vibe has announced its Summer Sales contest for all North American retail staff members, running from July 3 through Aug. 7.

Aylo, Pineapple Support Partner for Mental Health Video Series

Aylo has teamed up with Pineapple Support to create a safety video series aimed at educating performers and creators about mental health.

Ofcom Investigates FTV Sites for Possible AV Noncompliance

U.K. media regulator Ofcom is investigating First Time Videos, which operates the sites FTVGirls.com and FTVMilfs.com, for possible failure to comply with age assurance requirements under the Online Safety Act.

Show More