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

New Fansly Analytics Platform 'SlyKiwi' Launches

SlyKiwi, the new analytics platform exclusively designed for Fansly content, has officially launched.

Blush Debuts 'Dream Crush' Vibe

Blush has introduced the Dream Crush mini-vibrator from its Play With Me collection.

Vush, Kayla Jade Collab for Pleasure Product Collection

Sexual wellness brand Vush and performer Kayla Jade have partnered for a limited-edition line of pleasure products.

FPNCash Appoints Kimi Evans Head of Business Development

FPNCash has appointed Kimi Evans as its new head of business development.

XBIZ Expo Debuts New '3D' Hybrid Show Format, Set for Jan. 8-12

XBIZ Expo, the premier business-to-business event exclusively for product manufacturers, retail buyers and the broader pleasure community, will return this January with a new hybrid format designed to give qualifying participants more ways to conduct business.

CamModelDirectory Launches Platform Upgrade

CamModelDirectory has launched its CMD 3.0 platform upgrade.

Doja Cat Gives Nod to Motorbunny

Doja Cat has given a nod to Motorbunny in a social media post.

AEBN Publishes Popular Searches by Country for June, July

AEBN has released the list of popular searches from its straight and gay theaters by country in June and July.

Full Circle Debuts 'My Buddy' Anal Vibe Collection

Full Circle has introduced its new My Buddy collection of anal vibrators.

Lovense 'Gemini' Spotlighted on Wired.com

Lovense’s Gemini nipple clamps have been spotlighted on Wired.com.

Show More