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

2025 XBIZ Amsterdam Website Launches With Call for Speakers

XBIZ is pleased to announce that the website for its annual European conference, XBIZ Amsterdam, is now live.

ProDx Health Introduces 'Assured MoFi ID' Testing Program

ProDx Health has introduced its new Assured MoFi ID Program for testing.

NC Governor Vetoes Bill Targeting Adult, Could Face Override

North Carolina Governor Josh Stein today vetoed a bill imposing new regulations that adult industry observers have warned could push adult websites and platforms to ban most adult creators and content.

Eye of Love Expands 'Bloom' Collection

Eye of Love has introduced two new perfume oils from its Bloom collection.

Nobü Adds to 'Essentials' Collection

Nobü is expanding its Essentials collection with three new pleasure products.

25,000 Sign Petition to Legalize Pornography in Ukraine

An OnlyFans model’s petition to decriminalize pornography in Ukraine has amassed the 25,000 signatures required for official consideration by President Volodymyr Zelensky.

Like a Kitten to Release 'Adventure Collection'

Pleasure brand Like a Kitten has announced that it will debut its new Adventure Collection on July 15.

Full Circle Debuts New Bullet Vibes

Pleasure brand Full Circle has introduced a new range of bullet vibrators.

Magic Silk Debuts 'Butterfly Fantasies' Collection

Magic Silk has introduced its new Butterfly Fantasies line of intimate wear.

WannaCollab Joins Pineapple Support as Supporter-Level Sponsor

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

Show More