Amazon stops selling through CA affiliates

An package is prepared for shipment by a United Parcel Service (UPS) driver in Palo Alto, Calif. (AP Photo/Paul Sakuma, File)

June 30, 2011 10:34:13 AM PDT
Amazon has stopped selling items through its website that are offered by people and businesses based in California.

The online retailers move comes after state lawmakers voted to impose an online sales tax. Amazon believes it should not be subject to the tax because it does not have a physical presence in California, but many brick-and-mortar retailers believe the new tax will level the playing field with online sellers.

Governor Jerry Brown still needs to sign the new tax into law.