Board of Equalization Member Senator George Runner today issued the following statement in response to news that the “Amazon Tax” faces a referendum effort: “As I warned, Californians are losing jobs and income as a result of the so-called ‘Amazon Tax.’ It should come as no surprise that impacted California business owners would seek its repeal.
The so-called “Amazon Tax” is now California law, and it’s already a failure. After having terminated their advertising relationships with thousands of California-based Internet affiliate businesses, leading out-of-state online sellers continue to sell into California without collecting sales tax.
Proponents of the “Amazon Tax” claimed it would “create fairness” by “leveling the playing field” between California’s brick and mortar retailers and out-of-state online sellers. They claimed it would generate $200 million in new revenues for the state this year. But they were wrong.
So far all of the following online sellers have terminated their affiliate programs (if you know of others, please let me know):
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Each affiliate program termination represents lost jobs and lost income for California — losses that could have been avoided with a little common sense. These losses will grow even larger as affiliate businesses pack their bags and move to more business-friendly states.
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