The California Senate has passed a budget bill including the Amazon Tax. The language was included in last year’s budget but vetoed by Governor Schwarzenegger after Overstock threatened to terminate all California affiliates. Schwarzenegger has indicated that he will terminate the proposal again should it come to his desk. Sacramento Bee story.
While we can expect more affiliate terminations should this pass, does there come a point in which enough states are “Amazon Tax” states that retailers can no longer afford to terminate in-state affiliates? If so, what is that point. The chart below shows the percentage of US population of some of the actual and potential Amazon state.