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Old 06-30-2011, 12:40 PM   #1 (permalink)
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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

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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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Old 06-30-2011, 01:12 PM   #2 (permalink)
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If this moves to Wisconsin MAB will lose nearly all it's revenue.
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Old 06-30-2011, 01:50 PM   #3 (permalink)
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In Virginia they collect them when you file your income taxes. You are supposed to report any internet purchases you made during the year and pay sales tax on those purchases. It stinks!
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Old 06-30-2011, 01:54 PM   #4 (permalink)
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Keep in mind this isn't a sales purchase tax...it's an affiliate tax.

Well with affiliate taxes, sites like mine that are de facto chain/retail/franchise stores for other larger businesses (Muscle & Strength), we will take a huge hit.

This is basically putting crippling these businesses largest franchises by cutting their revenue nearly in half.

If it comes to Wisconsin most large e-retailers will stop doing business with affiliates in that state, which is simply destroying that businesses franchises in that state.
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Old 06-30-2011, 02:20 PM   #5 (permalink)
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You've really got big businesses to thank for this. Many of them pay little to NO taxes and, instead, get tax breaks. So, in order to bridge gaps, governments always break the backs of the middle class and lower middle class. We don't have the deep pockets to donate our way into safety.
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Old 06-30-2011, 02:41 PM   #6 (permalink)
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It's making me rethink survival.

If it hits Wisconsin I will need a product to sell so that I can continue to fund our sponsored lifters. It's not like MAB would go broke - it wouldn't. I would simply have severely diminished revenue. Enough (easily) to keep the servers plugged in but not to sponsor.

Don't fret athletes, this might be years off - hopefully.

Product to sell wouldn't be supplements, I will tell you that. I don't have the time or cash to start a line. Probably wouldn't need an e-book (gasp).
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Old 06-30-2011, 02:54 PM   #7 (permalink)
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Quote:
Originally Posted by BendtheBar View Post
..

Don't fret athletes, this might be years off - hopefully.

..
We hope. When things like this pass and are successfully tolerated in one or more states (especially big ones) the idea tends to get replicated.

It's like gas prices. They've been above $3 for so long that people have adjusted and are used to it, so don't expect them to get much lower.
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Old 06-30-2011, 02:56 PM   #8 (permalink)
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Quote:
Originally Posted by *MC* View Post
We hope. When things like this pass and are successfully tolerated in one or more states (especially big ones) the idea tends to get replicated.

It's like gas prices. They've been above $3 for so long that people have adjusted and are used to it, so don't expect them to get much lower.
Well I do live in a state with an ultra-liberal capital city, so normally we would have adopted it already. Our only saving is a rampaging Republican governor who is anti-new taxes.
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