Amazon Affiliates has stopped for California residents

Since I am a California resident, as of today, this blog is no longer eligible for Amazon Affiliates.  What does this mean?  The little Amazon searchbox in the corner used to earn Lauren's college fund about $25 a month.  (Mostly from her relatives buying things!).  Now because a new law passed, Amazon has decided to cut off their affiliates in California, so that they cannot be categorized as "doing business in California" and won't have to charge CA residents sales tax.

Of course I'm really disappointed about this.  Ironically *today* I checked and had the most purchases I've  had on one day in awhile-a big whopping 8 of them.  Doesn't seem like much, but it was a few dollars I'm now not getting.  This law will be challenged in the courts and Amazon states they may reconsider: " if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. As mentioned before, we are continuing to work on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available." (from their email)

Meanwhile, lots of people like me will lose revenue.   Of course this affects much more bloggers who actually take the revenue seriously.  (Lauren will go to college through other funds and I'm not living off of it.)  And small businesses will move out of state.  This LA Times article discusses it more.

I have more to say about this but I am really curious what you think.  I haven't read many bloggers' reactions.  Perhaps they are still biting their tongues or waiting to see how it all shakes out.  Comments, please!