Amazon Pulling the Plug on California Affiliates

Posted on June 29, 2011

It’s official… Jerry Brown has officially signed the so-called “Amazon Tax” into law affecting associates/affiliates producing online sales for Amazon while residing in California. This new law will begin on July 1, 2011. Not only does the new tax law affect Amazon, it applies to all out-of-state retailers to pay taxes on sales within the state driven by affiliates.

Before the law was official late Wednesday (6/29/2011), Amazon was sending out emails earlier that day stating they are terminating ongoing Associate Program contracts for anyone in residing in California. If anyone who want’s to continue working with them will have to do in another state.

What does this mean for affiliates?

Expect to see some of the 25,000 affiliates, especially the larger ones to relocate to states that don’t have similar tax laws.