Calif. Tax Fight With Amazon Could Hit Nonprofits’ Bottom Lines

California nonprofit groups as well as businesses and individuals stand to lose thousands of dollars in revenue from Amazon.com sales amid the state’s tax battle with online retailers, according to The Sacramento Bee.

Amazon effectively fired its 10,000 California affiliates—which earn commissions on sales to consumers who “click through” to the giant Internet retailer from links on their Web sites—following enactment last week of a state law requiring online shops to collect sales tax on purchases. Many other Internet sellers have followed suit.

Legal experts expect Amazon to sue the state. In the meantime the firm’s protest action cuts off a revenue sideline for organizations such as the California State Military Museum, which director Dan Sebby said collected about $2,000 a year—“our book-buying budget”—in Amazon commissions.

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