California Governor Jerry Brown signed a law Wednesday that will require Amazon.com and other Internet retailers to collect sales tax on goods sold to California residents. Mail order laws have long held that state sales tax doesn’t have to be paid by companies that do not have a presence in the state where the goods will be delivered. That’s simple interstate commerce law. In response to the signing of the California law, Amazon sent a letter to its affiliates in California terminating their relationships. Affiliates are companies that sell goods through Amazon.
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Spurned Affiliates Gnash Teeth Over Calif. E-Commerce Tax Law
Posted by: Rob Spiegel June 30, 2011 12:30 PMCalifornia Governor Jerry Brown signed a law Wednesday that will require Amazon.com and other Internet retailers to collect sales tax on goods sold to California residents. Mail order laws have long held that state sales tax doesn’t have to be paid by companies that do not have a presence in the state where the goods will be delivered. That’s simple interstate commerce law. In response to the signing of the California law, Amazon sent a letter to its affiliates in California terminating their relationships. Affiliates are companies that sell goods through Amazon.