Under a new law signed by Calif. Gov. Jerry Brown, online retailers like Amazon are supposed to start collecting sales taxes, even when they're based outside the state. Amazon says the new law is unconstitutional, and it won't collect the tax. One way the company is trying to avoid it, is by severing ties with about 10,000 small businesses and individual blogs based in the state which link to Amazon.com through their websites.
Amazon Cuts Ties With Calif. Affiliates To Avoid Tax
By Wendy Kaufman • Jul 1, 2011