California Affiliate Nexus Tax?

[Vendzilla]

The proposal, which Democrats said they would pass as soon as Tuesday, does not include the renewed tax hikes that the governor had been pushing to put before voters. But it does contain some charges that Democrats believe they can legally raise without GOP support. Car owners, for example, would pay $12 more per year to register their vehicles. Residents of wildfire-prone zones would pay a new fee for state firefighting efforts. Other revenue would come from forcing online retailers such as Amazon.com to collect sales tax on purchases by California residents.

Amazon sent out a letter

For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It 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.
As a result, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice. As of the termination date, California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before the termination date will be processed and paid in full in accordance with the regular payment schedule.

[u-Bob]

in other words: how taxes harm the economy...

[Vendzilla]

Originally Posted by u-Bob

in other words: how taxes harm the economy...

It's going to effect the affiliate model in California, I wonder if this is going to be signed, I knew governor moonbeam would do BS like this

[Grapesoda]

Originally Posted by Vendzilla

The proposal, which Democrats said they would pass as soon as Tuesday, does not include the renewed tax hikes that the governor had been pushing to put before voters. But it does contain some charges that Democrats believe they can legally raise without GOP support. Car owners, for example, would pay $12 more per year to register their vehicles. Residents of wildfire-prone zones would pay a new fee for state firefighting efforts. Other revenue would come from forcing online retailers such as Amazon.com to collect sales tax on purchases by California residents.

Amazon sent out a letter

For well over a decade, the Amazon Associates Program has worked with thousands of California residents. Unfortunately, a potential new law that may be signed by Governor Brown compels us to terminate this program for California-based participants. It 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.
As a result, we will terminate contracts with all California residents that are participants in the Amazon Associates Program as of the date (if any) that the California law becomes effective. We will send a follow-up notice to you confirming the termination date if the California law is enacted. In the event that the California law does not become effective before September 30, 2011, we withdraw this notice. As of the termination date, California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned on or before the termination date will be processed and paid in full in accordance with the regular payment schedule.

if on line retailers would pull cally sales tax it sure would save me a load of fucking bullshit with the state, cally is all over my like drunk fucking whore trying to find out what I've bought on line to make me pay tax $.02

[96ukssob]

just got that email from Amazon. kind of retarded IMO and im sure people will claim residence in other states to avoid this

[sandman!]

sucks to be in cali

[u-Bob]

Originally Posted by Vendzilla

It's going to effect the affiliate model in California,

affecting the affiliate model = affecting lots of people working from home.

[Vendzilla]

Originally Posted by u-Bob

affecting the affiliate model = affecting lots of people working from home.

yeah it will, I still can't believe people voted for that idiot again!

[Babaganoosh]

Nothing new here. You already can't be an amazon affiliate if you're in North Carolina, New York or Colorado. What I don't understand is why sales taxes aren't collected on all internet transactions anyway. It makes sense with the explosion of online transactions over the last decade.

Lash out at Amazon for shitcanning the affiliates, not the government who are just trying to collect sales tax like they would on a regular retail transaction.

[Vendzilla]

Originally Posted by Babaganoosh

Nothing new here. You already can't be an amazon affiliate if you're in North Carolina, New York or Colorado. What I don't understand is why sales taxes aren't collected on all internet transactions anyway. It makes sense with the explosion of online transactions over the last decade.

Lash out at Amazon for shitcanning the affiliates, not the government who are just trying to collect sales tax like they would on a regular retail transaction.

the taxes in California is ridiculous, always have been and it seems the states with the highest taxes are the ones that are always in the most financial trouble.

[DateDoc]

Online retailers are also required to collect CA sales tax now. CA needs something like WA Initiative 1053 which passed and requires that all tax increases (no matter their size) be approved either by a two thirds majority in the legislature or a public vote of the people.

[Vendzilla]

Originally Posted by DateDoc

Online retailers are also required to collect CA sales tax now. CA needs something like WA Initiative 1053 which passed and requires that all tax increases (no matter their size) be approved either by a two thirds majority in the legislature or a public vote of the people.

that would be a good thing, so it won't happen, it would probably be ruled as unconstitutional for some reason

[IllTestYourGirls]

Is the tax just on physical goods or electronic as well? Will adult programs need to start charging tax to Cali people?

[DateDoc]

Originally Posted by IllTestYourGirls

Is the tax just on physical goods or electronic as well? Will adult programs need to start charging tax to Cali people?

Not sure but I would not find it hard to believe it includes everything. Heck, in CA the state charges you a 5 cents per bottle CRV fee (tax) for each bottled drink you buy then includes the 5 cents in the total and taxes you on it.

[GetSCORECash]

So is Video Secrets going to remove all California based webmasters?

[$5 submissions]

Originally Posted by u-Bob

in other words: how taxes harm the economy...

Exactly. State govs are hurting cuz unlike normal households that cut expenses when income dips, they try harder than a tick stuck to a dog's red balls to keep outlays in place. Funny how 'permanent' TEMPORARY programs become once they get established. And funny how many new "problems" keep popping up that need GOVERNMENT solutions.

[jigg]

incorporate in Delaware, get a registered agent there, problem solved?

[DateDoc]

Originally Posted by jigg

incorporate in Delaware, get a registered agent there, problem solved?

Incorrect - if you live in CA you pay taxes in CA no matter where your company is located. CA is known for going after companies that are registered out of state yet are operated from within the state.