The Governor of California signed the "click-thru" nexus law or "Amazon law" as it is called, into law earlier this week. It was part of the larger state budget package.
Prior to the Governor signing the law, Amazon notified its California affiliates that it would terminate its relationship with them if the bill became law. Well, the Governor apparently didn't know that, or didn't care.
EFFECTIVE DATE
The bill takes effect immediately (so much for prior notice).
DETAILS
This bill includes in the definition of a retailer engaged in business in California as any retailer entering into agreements under which a person or persons in this state, for a commission or other consideration, directly or indirectly refer potential purchasers, whether by an Internet-based link or an Internet Web site, or otherwise, to the retailer, provided the total cumulative sales price from all sales by the retailer to purchasers in this state that are referred pursuant to these agreements is in excess of $10,000 within the preceding 12 months, and provided further that the retailer has cumulative sales of tangible personal property to purchasers in this state of over $500,000, within the preceding 12 months, except as specified.
For all of the details, go to the bill, ABX1 28.
Also, here is a link to the bill's general page., and a link to a recent article that you may find interesting.
QUESTION?
Are the enactment of these "click-thru" nexus laws creating more sales tax revenue for the states that enact them, or are they just eliminating affiliates? In other words, instead of states forcing online, remote retailers to collect sales tax, they seem to be causing the extinction of affiliate programs.
Is that the real goal? What do you think?
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