I've received emails from two separate companies that I am affiliated with that state California is preparing to implement an internet retail tax by using "affiliate nexus" type language in the emergency bills currently being passed. In reading the most recent news on California's emergency budget planning I have to agree that it looks like the road is paved for a new internet retail tax to be implemented.
If you live in California I suggest getting up to speed by contacting your congressman, website taxes can still be avoided but will affect us all if those who have an interest do nothing.
I wonder if Amazon will cut off all California affiliates like they just threatened to do with North Carolina affiliates for this very same thing (http://www.webmasterworld.com/advertising/3935267-2-30.htm), let's hope not or the precedence will be set for a country wide internet retail tax when all states follow suit.
edit: Apparently California and North Carolina affiliates were BOTH to be axed by Amazon, Overstock and Blue Nile immediately but a phone call from Gov Schwarzenegger to Overstock CEO and chairman Patrick Byrne took California off the hook, an apparent promise of veto being the reason.
That doesn't change the fact that not one but two separate bills are in place with two different approaches to accomplish one new tax, some legislators are determined and the outcome is still not decided.