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

LELO Debuts 'F2S Double Sonic' Stroker

LELO has introduced its new F2S Double Sonic stroker.

SextPanther Launches in EU, UK

SextPanther has expanded its territory to include the U.K. and E.U.

Andy Eustace Joins Full Circle Sales Team

Andy Eustace has joined the sales team at Full Circle.

Biird Launches Partner Appreciation Campaign

Biird has launched a campaign to provide gifts to staff members of its retail partners across Europe and North America throughout September.

Xgen Names Blanca Estrada-Gonzalez as Latin America Account Representative

Xgen Products has named Blanca Estrada-Gonzalez as its new Latin America account representative.

Male Power Expands 'So Comfy' Collection

Male Power has expanded its So Comfy collection of men's underwear.

Orion Expands 'Cuties' Vibe Collection

Orion Wholesale has introduced four new devices from its Cuties vibrator collection.

Lovense, Tiny Secret Games Launch 'Snapshot' In-Game Store

Lovense and adult game studio Tiny Secret Games have launched a Lovense store inside the “Snapshot” virtual world.

Segpay Expands to Australia, Names Sam O'Connell Managing Director

Segpay has expanded its territory to include Australia and named Sam O’Connell as managing director of its Australian operation.

Ondato Joins ASACP as Corporate Sponsor

Age and identity verification company Ondato has signed on as the latest corporate sponsor for Association of Sites Advocating Child Protection (ASACP).

Show More