California Governor Brown signed into law on Thursday the state budget for the 2011 - 2012 fiscal year in California. One of the provisions contained in the budget is an affiliate nexus tax that requires online merchants to collect sales tax on Internet purchases if their affiliate program has any affiliates located within the state.
As a result of this legislation, Amazon has shut down it's California Associates Program and sent termination notices to all it's affiliates located in California, effective Wednesday June 29, 2011 (yesterday).
However, I would like to reassure you that I do not expect any interruption in service as a result of this state law. While 4x4Wire does derive some income from purchases through affiliates, I have been working to ensure that 4x4Wire advertisement income is within legal bounds and not dependent on affiliate income.
Due to the sensitivity and concerns surrounding this issue I wanted to reach out to you now with this news. 4x4Wire is a registered California corporation.
In the short term, I do not expect you to see any disruption of service. However, the long tern outlook may require some adjustments.
Rest assured that I will strive to maintain uninterrupted service to the loyal viewer base of 4x4Wire.
In the mean time, California is making it difficult to maintain internet websites. And, in the long term, the current federal administration is making it difficult to maintain on-line websites that do not subscribe to a politically correct message.
The next election cycle is beginning. I encourage you to dig into the issues and understand what your vote means.