I was afraid this was going to happen, as certain California politicians have been pretty determined to get this done, despite the examples set in other states. California’s new budget includes a provision often called the “Amazon tax,” which means that qualifying businesses which use affiliate marketers in the state of California are now responsible for collecting California sales tax. Amazon is the big target, hence the nickname, but other businesses will be affected as well.
And it went as it did in every other state that has passed this kind of law, with the dropping of all affiliates in the state. No new sales tax income for California, affiliate incomes drop, some planning to leave California entirely, while others are talking lawsuit. Yep, great plan, California. Thanks a bunch.
The thing that annoys me most about Amazon dropping affiliates in California is that they may have to collect sales taxes here anyhow. They have subsidiaries in California, and the law includes that sort of presence. Seems to me that California might be a good place to fight these laws.
It’s early yet, so we’ll just have to see what the reaction is long term and how any lawsuits go. California’s a big state; I don’t expect things to go quietly.
As for me, I’m glad that I didn’t get going on too many ideas for affiliate sites based on income from Amazon. I don’t think my best program will be affected by this tax, but I’m not 100% positive. Either way, I have a lot of links to locate and change, and fast, as the law goes into effect on Friday. Gotta love the reasonable notice too, guys!