Amazon.com on Thursday notified an estimated 10,000 affiliates in California that it was ending its relationship with them because Gov. Jerry Brown signed into law a bill that requires them and other out-of-state, online only retailers to begin paying sales taxes on any sales originated by instate affiliates.
The new law, dubbed an Amazon tax, even though it would affect all out-of-state, online only retailers, is expected to raise $200 million for Californias revenue starved state government.
Amazon cut off relations with affiliates in Illinois, Connecticut and Arkansas when they passed similar laws but has yet to do so in New York.
