Amazon Throws Tax Hissy-Fit, Dumps California Affiliates

Amazon and Overstock have severed their agreements with affiliates based in California, in an overnight response to the imposition of a sales tax for online retailers of physical goods. Online retailers are exempt from sales taxes, but dead-broke California introduced such a law on Wednesday night.

“We oppose this bill because it is unconstitutional and counterproductive,” the retailer wrote on Wednesday. “It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action,” the retailer continued.

Several hours later Amazon fulfilled the threat. Read more at The Register

Amazon.com’s Affiliates Take Hit For State Tax Law

Amazon.com is wielding the ax.

The Goliath of Internet retail sent out an e-mail to its estimated 10,000 California “associates” on Wednesday afternoon, saying it will end their relationship should Gov. Jerry Brown sign the online sales tax bill passed by the Legislature.

Well, Brown signed the bill later that afternoon, which means the battle has been joined over the $200 million the state expects to collect from the heretofore unpaid tax.

Calling the legislation “unconstitutional and counterproductive,” the Seattle company said its enactment into law “compels us to terminate this program … as of the date that the California law becomes effective.” Read more on San Francisco Chronicle

California Tax Law Forces Amazon to Withdraw Associates Program

Amazon has been butting heads with many states that feel the e-commerce giant needs to be paying taxes alongside brick-and mortar businesses. Now, Amazon has vowed that it will terminate its California Associates Affiliate program in response to a sales tax bill part of an effort to balance the state’s budget. The Amazon ax was just waiting for Jerry Brown to sign the bill into law, and since …
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