Amazon Cutting Ties With Calif.-Based Affiliates

SAN FRANCISCO (AP) -- Amazon.com says it will stop working with online affiliates based in California since the state passed a new rule that forces online retailers to collect sales tax there.

In an email Wednesday to California-based affiliates -- individuals or companies who run websites that refer visitors to Amazon and then get a cut of any resulting sales -- the Seattle-based company said it would cut ties with those who reside in the nation's most populous state if the law became effective. Gov. Jerry Brown signed the law Wednesday as part of a larger state budget package.

In its email, Amazon.com Inc. called the bill "unconstitutional" and "counterproductive."

Passage of the law, which is projected to net $200 million annually, makes California the latest state that has enacted such legislation.

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