Amazon Drops California In Growing E-Commerce Affiliate Tax Law War | ZDNet
Amazon Affiliate program allows SMBs to make commissions out of sales generated from their websites. It was formerly the case that Amazon didn't have to pay state taxes on these because they didn't constitute a physical storefront in the state. State laws changed that so that these SMBs are now considered a sales channel for Amazon so must be taxed. States affected so far include: IL,CO,HI,CT,RI,AK,TX and most recently CA.
You guys think another state will fall to the frey or more frightening having this thing imposed at the federal level...