The battle over online sales taxes in California hit a new stage this week.
Gov. Jerry Brown signed the law Wednesday night that will require Amazon.com Inc. and others to collect taxes on goods sold through their Websites.
So Amazon.com followed through on a threat made to cut ties to its 10,000 affiliates in the state.
The world's biggest Internet seller (NASDAQ:AMZN) had been paying bloggers, marketers and publishers for sales made on referrals and listed California sellers on its site.
But the new law makes Amazon responsible for tallying and paying taxes on those sales, something it is fiercely resisting around the country. It has similarly cut off affiliates in Arkansas, Connecticut and Illinois where similar laws were adopted.
It is challenging a New York state law in court rather than cut off affiliates there.
Source: Silicon Valley/San Jose Business Journal
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