You are not understanding the issue (and believe me I can see why with the mess California has made). This is NOT about the already existent law requiring sales tax on internet purchases that are in the same state. This is a NEW law signed by Brown that ADDS a tax to these affiliates or behind-the-scenes suppliers and manufacturers who might happen to be located in California. Those sales previously were not taxed, and to avoid adding the tax Amazon cut the relationship with those dealers. You know the folks I mean, everything from a Mom and Pop jewelry maker to a 500 employee widget seller. These folks sell thru Amazon as well as other sources.
That was my question...is it a new law.
You don’t have it quite right. This issue is a little confusing, mainly because of the amazon “affiliate” terminology which can mean two things. Amazon affiliates in California who sell through the amazon storefront already are responsible for collecting sales tax. There are also affiliates who simply refer traffic to Amazon and collect a small commission of the sale. There is no sales tax collected on the referrals, because it is Amazon, making the transaction. The change in the law is that California says because Amazon has these affiliates in California, it therefor has a presence in California, and must collect sales tax on every single transaction with a California resident, regardless of whether an affiliate is involved.
I understand the issue just fine, thanks, and I’m not sure why you think I wouldn’t.
Best wishes —