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MrPopup · 12-28-2002, 03:16 PM

Yikes!

You think BIGGIE would still be singing "Im going going back back to cali cali" if he was alive today?

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Proposed Sales Tax on Online Shopping Threatens Adult Sites

SACRAMENTO, Calif. - Deficit-ridden California is considering levying sales tax on online purchases, including membership in adult sites.

Gov. Gray Davis vetoed a similar bill in 2000, wary of sending the wrong message to an emerging medium. At that time the state was flush with a pre-9/11, pre-energy crisis treasury. Now, as the state faces a $35 billion deficit, the potential revenue is looking more and more tempting in the face of the alternative: cutting social programs.

"We can no longer ignore an entire segment of the retail marketplace," said Pat Leary, lobbyist for the California State Association of Counties. Online shopping in California could generate $200 million in tax revenue.

Collecting taxes would be tricky, as existing law mandates only businesses with physical locations, or "nexuses", in the state can collect taxes. Brick-and-mortar businesses, such as Barnes & Noble, which has both a web and a physical presence in California, are already allowed to levy taxes on in-state buyers.

The National Governors' Association reports that its members sliced $13 billion from state programs last year. Though lawmakers approved a moratorium on e-commerce taxes through November, 2003, the potential revenue from web site taxation might be difficult to resist.

Fpr a related story, click here:

http://www.chicagotribune.com/techno...oph eds%2Dhed

12-28-2002, 03:16 PM
MrPopup Confirmed User Join Date: Aug 2002 Location: on the internet Posts: 3,783	Proposed Sales Tax on Online Shopping Threatens Adult Sites Yikes! You think BIGGIE would still be singing "Im going going back back to cali cali" if he was alive today? ************************ Proposed Sales Tax on Online Shopping Threatens Adult Sites SACRAMENTO, Calif. - Deficit-ridden California is considering levying sales tax on online purchases, including membership in adult sites. Gov. Gray Davis vetoed a similar bill in 2000, wary of sending the wrong message to an emerging medium. At that time the state was flush with a pre-9/11, pre-energy crisis treasury. Now, as the state faces a $35 billion deficit, the potential revenue is looking more and more tempting in the face of the alternative: cutting social programs. "We can no longer ignore an entire segment of the retail marketplace," said Pat Leary, lobbyist for the California State Association of Counties. Online shopping in California could generate $200 million in tax revenue. Collecting taxes would be tricky, as existing law mandates only businesses with physical locations, or "nexuses", in the state can collect taxes. Brick-and-mortar businesses, such as Barnes & Noble, which has both a web and a physical presence in California, are already allowed to levy taxes on in-state buyers. The National Governors' Association reports that its members sliced $13 billion from state programs last year. Though lawmakers approved a moratorium on e-commerce taxes through November, 2003, the potential revenue from web site taxation might be difficult to resist. Fpr a related story, click here: http://www.chicagotribune.com/techno...oph eds%2Dhed