I’ve been in conferences all day – having a great time if only for my 3 day long headache I was just emailed this video that aired yesterday on CBS 5. Please feel free to ask questions and Mr. Frugal and I will respond in the comments section. We’ve received so many emails about this and we want to make sure you understand what’s going on. Just to clarify, Amazon is getting most of the publicity but CA affiliates have lost relationships with many other companies.
One other clarification – Julie Watts said that most Californians don’t pay state taxes on their online purchases. What that means is if you make a purchase on Amazon, at the end of the tax year you’re supposed to pay the taxes on that as a part of your personal tax filings. Since most residents of CA aren’t doing that CA has instated this new tax to recover some of that last income. CA is now asking Amazon to pay state taxes as if they were a business located in the state of CA, which they are technically not. So in turn Amazon has pulled the plug on all Amazon affiliates – which included us.