Amazon Hopes to Overturn California’s Online Sales Tax Ruling

And the battle continues...Amazon.com is supporting a ballot initiative that seeks to overturn California's recent ruling requiring online retailers to collect sales tax.

In June, California passed a new law requiring online retailers to collect sales tax from customers even if retailers do not have a brick and mortar store in the state. In response, Seattle-based retailer Amazon.com shut down its California affiliate program, calling the new law “unconstitutional” and “counterproductive.”

“At a time when businesses are leaving California, it is important to enact policies that attract and encourage business, not drive it away,” Paul Misener, Amazon’s vice president of public policy, is quoted as saying in The New York Times.

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Amazon Threatens to Eliminate California Affiliate Program Due to New Sales Tax

Wikipedia

And another one bites the dust. California could become the fifth state to lose its Amazon affiliate program thanks to a controversial sales tax affecting online retailers.

On Wednesday, California governor Jerry Brown signed a law that will require online retailers to collect sales tax from customers even if retailers do not have a brick and mortar store in the state. Though Amazon is based in Seattle, Washington, California, like four other states before it, has ruled that Amazon’s affiliates (10,000 in the case of California) are enough of a physical presence to warrant a new sales tax. Amazon, however, disagrees and has threatened to cancel its California affiliate program if the law is enacted.

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