NOT a Guru!
Keeping it simple, without the hype. PC tips and Internet advice for mom and pop businesses.
Keeping it simple, without the hype. PC tips and Internet advice for mom and pop businesses.
Those of us who are Commission Junction affiliates recently received an email alerting us to California’s proposed Internet sales tax law which would be similar to the one that the State of New York passed and that its Supreme Court upheld.
According to Assemblymember Nancy Skinner’s press release, AB 178, the proposed use tax, would raise $55 million per year for the State of California. Skinner says that the bill would “provide that out-of-state companies which maintain a network in California and thus have a presence in the state would therefore be required to collect sales tax on orders received from within California. New York passed a similar law, and was sued by Amazon.com. The New York Supreme Court dismissed Amazon’s claim, based on an extensive body of legal decisions defining the nature of nexus and upheld New York’s right to levy the sales tax.”
The bill would purportedly exempt business that do less than $10,000 in California sales per year.
You can track the status of AB 178 here.
A hearing is set for April 13. Commission Junction, which is based in California, plans to oppose the bill at the hearing.
Skinner’s press release indicates that the bill would make the playing field more level for brick and mortar businesses in California. I think that this type of justification is not the main reason … the primary thrust of the Internet sales tax bill is to get money. Period. I think we’re going to see more and more of this type of legislation. I also think that these bills will be upheld, no matter how much opposition there is.
The bottom line is that government always wants a piece of the pie. And they intend to get it.
Watch for every state in the union to pass this type of bill.
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I think this is a bad move for California to do. Lets hope it dosent go thru.
I don’t think it’s a good move, either. However, my bet is that they will do it, and many other states will be enacting similar tax legislation.
yap i agree i think its a bad move to do anything. lets find out if they’re really going to do it.
It is very very bad move! I will wait your next post about California taxes!