California passes online sales tax legislation

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California passes online sales tax legislation

Jun 30 2011

Effective June 29, Amazon has cancelled its contracts with about 10,000 California-based affiliates after Govenor Brown signed a law that requires large out-of-state retailers with affiliates in California to collect sales tax on purchases made by their California customers.

California is the latest state to pass a law to push back against the exemption that allows out of state retailers to not collect sales tax - an exemption made by the US Supreme Court decades ago, in favor of the mail-order industry, based on the constitutional premise that one state may not tax another... continued

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