Amazon.com said today that it's reluctantly severing ties with affiliates in California, a move that it hopes will let it continue shipping products to state residents without collecting sales taxes.
But a little-noticed clause in the legislation that Gov. Jerry Brown, a Democrat, signed into law today gives California tax collectors a second, albeit legally untested, cudgel to use against the Seattle-based company. The law takes effect immediately.
The measure says that any retailer who "through a subsidiary" has any "place of business" in California must collect sales taxes. And--surprise!--Amazon has two subsidiaries … Read more