Moving Forward!

Hello friends. 

I just wanted to let you know that I am in the middle of moving to Richmond, Virginia to start a new position.  Therefore, I may not be writing any blog posts for a couple of weeks, but please don't give up hope.  I will return.

In conjunction with my new position, I may change the focus of this blog.  Not sure yet.  As I settle into my new position, the continued purpose, focus and direction of this blog will become clearer.

Please keep in mind, that this blog is, and will remain my personal blog.  All the viewpoints and opinions expressed on this blog are my own.  This blog is in no way connected to the firm at which I work.

If you desire for me to provide state and local tax services or indirect tax services to you or your business, I will provide those services through the firm at which I work.

Hopefully that makes sense.

Thanks for reading.  I will be back soon!!!!

California, Amazon and the Elimination of Affiliates!

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?