Old news, from June the 29th, but I hadn’t heard it. From the Los Angeles Times:
Amazon.com dropped about 10,000 California-based associate sales partners late Wednesday so that it would not be forced to collect California state sales tax on purchases made through them. The tax is new and was signed by Gov. Jerry Brown on Wednesday as part of a plan to close a gap in the 2011-12 budget.Later in the article we read, “Connecticut, Illinois, New York, North Carolina, Arkansas and Rhode Island have all passed similar laws requiring Internet retailers to collect sales tax — sometimes called an “Amazon tax” — and Amazon responded by dropping its associate partners in those states, CNN Money reported.”
As passed, the law requires large out-of-state retailers to collect sales taxes on purchases that California customers make on the Internet. Those taxes were lowered by 1 percentage point to ease the implementation.
What Amazon expects to gain from cutting off its sales partners is “not entirely clear,” the San Francisco Chronicle writes.