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

Rouge Group Taps Sean Macauley for Global Sales Manager

U.K. pleasure brand Rouge Group has appointed Sean Macauley as its new global sales manager.

Male Power Debuts 'Gridlock'd' Collection

Male Power has introduced its new Gridlock’d collection of men's underwear.

B-Vibe, Gigi Engle Partner for 'Kink Starter Kit'

B-Vibe and author Gigi Engle have partnered for the limited-edition Kink Curious Kit.

SinfulXAI to Launch New AI Generator

AI companion platform SinfulXAI has announced its new AI video generator, launching in February.

Orion Debuts 'Vibepad Mini' Vibrator

Orion Wholesale has introduced its new Vibepad Mini vibrator.

SCOTUS Won't Hear Appeal in NYC Adult Businesses Zoning Case

The U.S. Supreme Court has declined to hear an appeal by a group of adult businesses of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

AEBN Publishes Popular Searches for November, December

AEBN has published the top search terms for November and December from its straight and gay theaters in all 50 states and the District of Columbia.

National Signs Distro Deal With NeuroSource for Happy Mind, XXXTabs

National Distribution has signed a deal with NeuroSource to carry the wellness brand's Happy Mind and XXXTabs product lines.

Nobü Partners With JellyFilledGirls for 'Jëli' Vibrator

Pleasure brand Nobü has teamed up with creator duo JellyFilledGirls to release the Jëli vibrator.

Orion Debuts 'RC Inflatable Expander Plug' From 'Anos' Line

Orion Wholesale has introduced the RC Inflatable Expander Plug with Vibration from its Anos line.

Show More