Consumers in California will have to begin paying sales tax on their purchases from eCommerce websites starting Friday.
Gov. Jerry Brown signed legislation that will require online retailers to collect sales tax.
According to the law, any retailer with an office or warehouse in California must collect the tax--this has also been broadened to include company’s affiliates and subsidiaries.
In response, Amazon has ended service to thousands of affiliates that would qualify Amazon as to having to take sales tax. Amazon has done this in other states as well. By not collecting taxes, Amazon has a clear price advantage over its competition--many of whom are affected by such legislation.