Amazon Terminates Deal With 25,000 California Websites

Posted By on June 30, 2011

Amazon just escalated a stink with California over Internet taxes….and emailed the termination of its affiliate advertising program to 25,000 websites.  Bad seats…hey buddy, front row behind a pole!!

Gov. Jerry Brown has signed into law California’s tax on Internet sales through affiliate advertising which will immediately cut small-business website revenue 20% to 30%, experts say.

The bill, AB 28X, takes effect immediately. The state Board of Equalization says the tax will raise $200 million a year, but critics claim it will raise nothing because online retailers will end their affiliate programs rather than collect the tax.

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