A few weeks ago, Amazon.com dropped associates in California due to a new sales tax law. Needless to say, this action made many loyal Amazon users and sellers unhappy. Many people blamed the state of California while others placed blame on Amazon. Regardless of which party you chose to blame, the fact is, the accounts for Amazon associates in California have been terminated.
Now, Amazon.com is seeking a ballot initiative that could repeal the California law that requires online retailers such as Amazon to collect sales tax. The California attorney general's office received a petition on Friday. Next, the attorney general's office will prepare a title and summary for the initiative. The initiative will require nearly 434,000 voters' signatures in order to qualify for the ballot.
California isn't the only state who is seeking a new source of revenue in the form of collecting taxes from online retail transactions. In fact, Amazon has discontinued affiliate programs in Illinois, Colorado, North Carolina, and other states due to similar legislation. The California law is expected to generate $200 million in revenue for the state.
The earliest voters would be able to vote on the initiative is February 2012.