California to Out-of-State Online Retailers: Collect State Sales Tax

June 30, 2011 -

California has told out-of-state online retailers to start collecting sales tax for customers residing in the state Beginning July 1. This includes Amazon.com, Overstock.com, and GameStop.com. Beginning Friday this new requirement for retailers takes effect, along with a 1-percentage-point drop in the tax. The new tax collection scheme is projected to raise $317 million a year in new state and local government revenue.

Besides the slight cost to California customers, there are other adverse effects for companies connected with Amazon and similar retailers. Amazon and online retailer Overstock.com have reportedly told thousands of California Internet marketing affiliates that they will stop paying commissions for referrals of click-through customers. This is due to the fact that the new requirement applies only to online sellers based out of state that have a connection to California, such as workers, warehouses or offices.

The LA Times reports that "both Amazon in Seattle and Overstock in Salt Lake City have told affiliates that they would have to move to another state if they wanted to continue earning commissions for referring customers."

California's law was drafted to circumvent a 1992 U.S. Supreme Court ruling that retailers can't be forced to collect sales taxes unless they have a physical presence in the state. The new law establishes that presence by redefining it in two ways: when a seller pays commissions to affiliate sites in California, that refer buyers; and when sellers have a related company operating in the state.

Many of those affiliate companies said that they plan to move or are considering a move.

Meanwhile, Governor Jerry Brown is praising the new law, calling it a "common-sense idea." He signed the bill into law on Wednesday.

Amazon sees it differently:

"We oppose this bill because it is unconstitutional and counterproductive," Amazon wrote to its California business partners Wednesday. Amazon has said what further actions it might take to challenge the California law.

Source: LA Times

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Comments

Re: California to Out-of-State Online Retailers: Collect ...

Apparently, Barnes and Noble welcome the new law

http://blogs.publishersweekly.com/blogs/PWxyz/?p=5643

“We thank Governor Jerry Brown for demonstrating his commitment to California businesses by signing e-fairness into law. This legislation will directly benefit California businesses by creating a fair marketplace,” said William Lynch, Chief Executive Officer, Barnes & Noble. “We believe that e-fairness will improve the economy, add jobs, and help struggling businesses everywhere in California. By signing this law, the Governor has made clear that his priorities are to help bolster economic recovery. This is a huge win for business in the state of California.”

 

What is a game?(throws wine glass on the floor and it breaks to pieces) A miserable little pile of secrets.

What is a game?(throws wine glass on the floor and it breaks to pieces) A miserable little pile of secrets.

Re: California to Out-of-State Online Retailers: Collect ...

I was watching TV the other night, North Dakota came up about it's amazing job growth through some backwards extremeist idea that "Bussiness Friendly Laws" are good for jobs.

 

I guess Califorina is far too progressive for such bacwards thinking.

Re: California to Out-of-State Online Retailers: Collect ...

Gamestop isn't already collecting tax? They certainly have a nexus in CA.

 

Re: California to Out-of-State Online Retailers: Collect ...

Fun fact: Gamestop.com is a seperate entity from brick-and-mortar stores. Since it's based in Texas, and has no branches in California, it can enjoy the same non-taxing that Amazon.com and Overstock.com has. When you order from Gamestop.com, you're ordering directly from the warehouse (In Texas), and not a local location.

_____________________________________________________________________________

"Power means nothing without honor and pride."

http://grifsgamereviews.blogspot.com My video game review site.

Atlanta Video Games Examiner for examiner.com

Re: California to Out-of-State Online Retailers: Collect ...

As a Californian myself I have to say this was stupid. We all knew exactly what Amazon and others would do, cut ties to all affiliates in California, thus causing small California businesses who rely on those programs to be hurt. This won't bring any signficant money into the state, on the whole we'll probably lose out.

California has to take a good hard look at what it wants to do about property taxes before we'll be solvent again. That and cut services.

Re: California to Out-of-State Online Retailers: Collect ...

Thanks a lot to everyone who voted Jerry Brown into office. Good job. Real good.

CA is fucked.

Re: California to Out-of-State Online Retailers: Collect ...

I can see the tourism brochures now. "California: What Constitution?!"

_____________________________________________________________________________

"Power means nothing without honor and pride."

http://grifsgamereviews.blogspot.com My video game review site.

Atlanta Video Games Examiner for examiner.com

Re: California to Out-of-State Online Retailers: Collect ...

Good bye jobs. Not like California needed you or anything. 

Re: California to Out-of-State Online Retailers: Collect ...

i spit out my milk when i red  your coment it made me laugh so hard. but yea its redickulis how peaple seam the way to get out of det is to tax in sted of you  know maybe cuting spending  i know i know ratickel idea

am dyslexic and have a learning disablement from when i died as a baby and sustained brain damage do to lack of oxygen pleas pardon my bad spelling and grammar

 

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am dyslexic and have a learning disablement from when i died as a baby and sustained brain damage do to lack of oxygen pleas pardon my bad spelling and grammar-

Re: California to Out-of-State Online Retailers: Collect ...

Understood, but you can always run your text through a spell-checker before you post if it bothers you enough to feel the need to explain it.  

Re: California to Out-of-State Online Retailers: Collect ...

it doesint bug me what bugs me is when i get peaple acting like gramer notzies and  herassing me over it so i put it in becuse for the most part  it keeps ppl from sayingthings

 

am dyslexic and have a learning disablement from when i died as a baby and sustained brain damage do to lack of oxygen pleas pardon my bad spelling and grammar

 

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am dyslexic and have a learning disablement from when i died as a baby and sustained brain damage do to lack of oxygen pleas pardon my bad spelling and grammar-

Re: California to Out-of-State Online Retailers: Collect ...

Spell Check.

If you're aware enough that you have an awful way with words, be productive enough to counter it rather than using your disability as an excuse for laziness.

Here are we -- and yonder yawns the universe.

Here are we -- and yonder yawns the universe.

Re: California to Out-of-State Online Retailers: Collect ...

This bill is aready in New York, Illinois, Rhode Island, and North Carolina. I find this counter-productive in that the bill just makes Amazon, Overstock, drugstore, and E-bay remove their presence from the state rather than rework their entire site to accomidate individual states.

Rhode Island General Treasurer Frank T. Caprio was recently quoted, saying, "The affiliate tax has hurt Rhode Island businesses and stifled their growth, as they’ve been shut out of some of the world’s largest marketplaces, and should be repealed immediately."

Re: California to Out-of-State Online Retailers: Collect ...

It's just like the pre MPAA days.

Re: California to Out-of-State Online Retailers: Collect ...

California has an unconstitutional bill hard on now.

 
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ZippyDSMleehttp://gamepolitics.com/2015/01/30/pewdiepie-and-other-youtube-stars-criticize-nintendos-new-revenue-sharing-program#comment-29809502/01/2015 - 7:11pm
ZippyDSMleeASked a question, that might not be incoherant and useless.02/01/2015 - 7:11pm
Andrew Eisen"Let me sink my claws into your flesh to prove my love!"02/01/2015 - 5:49pm
Goth_SkunkAs for her hindclaws, I'm incredibly blessed: She trims those herself. It's amazing!02/01/2015 - 5:47pm
Goth_SkunkThankfully she's not scratching anywhere she isn't supposed to, but when she climbs up into my lap and kneads at my stomach or arm, I prefer dull claws to the pinpricks she had today.02/01/2015 - 5:47pm
Andrew EisenSure, sure. If she's scratching things she's not supposed to, trimming is a better solution than declawing. Hard for them to groom with no claws.02/01/2015 - 5:41pm
Goth_SkunkShe does, but those items don't do a thing to keep claws dull. In fact, they help sharpen them. Cats are going to scratch. It's instinctive. Even if they've been declawed, they'll still execute the behaviour on a surface pleasant to them.02/01/2015 - 5:36pm
Andrew EisenAn indoor cat I'm guessing. Does she not like to use scratching posts or things of that sort?02/01/2015 - 5:28pm
Goth_SkunkOff-Topic Sunday: I hate trimming my cats front claws. Not because she makes it more trouble by fidgeting, she's actually well behaved. I'm just anxious as hell that I'll trim too deep and cut into the quik. :(02/01/2015 - 5:27pm
WonderkarpMonte : Its kind of hard to ignore that commentary when companies you patron invite the commentators into their halls to "Better Themselves".02/01/2015 - 4:33pm
CultofZoidbergWhen are they going to release Brigandine Legend of Forsena on Steam, i don't trust Torrent, and a used copy is about 80 dollars02/01/2015 - 3:23pm
prh99MechaTama: I don't know his motive for asking, he could be just trying to cause trouble. If not he waited too long and in either case should just give up.02/01/2015 - 1:39pm
MonteIf you don't like someone's commentary; simply ignore them. Do not give them ANY kind of attention; even negative attention gives them traffic. If they're wrong and their opinions cant stand on their own merits, they will simply fade away into obscurity.02/01/2015 - 1:17pm
IanCBut of course no one on the GG side has been harassed. Nope. None at all. BS. Both sides are acting like children. No, I take that back, CHILDREN are better behaved.02/01/2015 - 12:25pm
MechaTama31Of course, that advice is only really useful if you are one of the harassers...02/01/2015 - 11:50am
prh99Maybe it's time to rethink your strategy if your enemy doesn't have to make stuff up.02/01/2015 - 5:01am
prh99Also if you don't like someone, harassment and scandals will only get them more attention. Zoe Quinn would probably not be as well known if not for various harassers.02/01/2015 - 5:00am
prh99Personally, I just clicked the three vertical dots the first YouTube recommended one, haven't seen one since. Too bad I can't get rid of Pewdiepie video recommendations that easily.02/01/2015 - 3:19am
prh99Just don't watch the videos, who cares what she does or doesn't do. If her audience likes it so be, if they think she's doing something she shouldn't they'll stop watching.02/01/2015 - 3:14am
WonderkarpAndrew Yoon Died http://www.gamerevolution.com/news/rip-andrew-yoon-3096901/31/2015 - 10:26pm
 

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