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Old 06-30-2011, 12:40 PM   #1
BendtheBar
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Default California Taxes Internet Sales

California Taxes Internet Sales

Internet sales tax: Online retailers to start collecting sales taxes in California - latimes.com

Amazon ends deal with 25,000 California websites

Amazon ends deal with 25,000 California websites | amazon, affiliate, california - The Orange County Register

Quote:
Gov. Jerry Brown has signed into law California's tax on Internet sales through affiliate advertising which will immediately cut small-business website revenue 20% to 30%, experts say.

Amazon has already emailed its termination of its affiliate advertising program with 25,000 websites. The letter says, in part:

(The bill) specifically imposes the collection of taxes from consumers on sales by online retailers - including but not limited to those referred by California-based marketing affiliates like you - even if those retailers have no physical presence in the state.

We oppose this bill because it is unconstitutional and counterproductive. It is supported by big-box retailers, most of which are based outside California, that seek to harm the affiliate advertising programs of their competitors. Similar legislation in other states has led to job and income losses, and little, if any, new tax revenue. We deeply regret that we must take this action.
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