In an attempt to collect sales taxes from stores outside the state, the California government has decided that my association with Amazon gives them a physical presence in California, thus requiring Amazon to pay sales tax to California when people buy things from out-of-state merchants.As Tessa adds, people like herself "the little people" are the ones getting hurt. Read more, including Amazon's response to their California affiliates, here: Tessa Dick Presents: It's a Philip K. Dick World!: California killed my Amazon store
So Amazon has terminated all California affiliates. Of course, this means that our state government will not get the sales taxes, and they will lose a huge amount of income tax.
Also see pigligpstick's blog on this.