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"Amazon Tax" language in California budget bill

"Amazon Tax" language in California budget bill

         

dslpromo

7:30 pm on Jun 20, 2009 (gmt 0)

10+ Year Member



California affiliate marketers should be concern about the budget bill. While, AB 178 has been stalled, the language of it has been worked into the the budget bill. This will be devastating to California based affiliates. You all have seen what happened in NY, and its my understanding that California's law will be even more harsh. The legislators are promising $149.5 million in additional sales tax collection, but what will really happen is that it will put most California based affiliates out of business.

Please email your your California state assembly members and state senators and let them know that the "Amazon Tax" will put you out of business or force you to move.

You can look up your Assembly members and Senators at:
[assembly.ca.gov...]
Click on the "Find My District" link.
To be most affective you should probably email and call. At the very least email.

dslpromo

8:19 pm on Jun 20, 2009 (gmt 0)

10+ Year Member



This is a very big issue for California affiliate marketers and merchants nation wide. Would it be possible to get this thread on the front page?

incrediBILL

10:28 pm on Jun 20, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



I front paged this topic back in March:
[webmasterworld.com...]

Sure wouldn't hurt revisiting as NC is now doing the same thing:
[webmasterworld.com...]

[edited by: tedster at 4:43 am (utc) on June 21, 2009]
[edit reason] link fix [/edit]

dslpromo

4:51 am on Jun 21, 2009 (gmt 0)

10+ Year Member



Thanks for pointing out those links incrediBILL. What makes it more urgent now is that the tax code is in the budget bill, which means we have to act fast to stop it.

LifeinAsia

5:08 pm on Jun 22, 2009 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



I heard back from one senator I contacted. He apparently wasn't aware that the language had been snuck into the budget bill. So it is definitely critical that you point this out when you contact your representatives!

[edited by: LifeinAsia at 5:18 pm (utc) on June 22, 2009]

dslpromo

7:35 pm on Jun 24, 2009 (gmt 0)

10+ Year Member



Amazon is already threatening to pull out of California:
[online.wsj.com...]

How many other merchants will follow? It would be nice if California could learn from NY's mistake.

<Added>
Link with the PDF from Amazon to Gov. Schwarzenegger:
[techflash.com...]
</Added>

ken_b

8:00 pm on Jun 24, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



The FTC is talking about regulating blogs. But AP article [google.com] indicates that even using display ads or posting affiliate links might qualify for regulation.

How would this affect publishers who use AdSense on blogs or other sites.

LifeinAsia

4:11 pm on Jun 25, 2009 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



CA's budget failed (this round, any way).

Republicans and the Govenator have promised to vote against/veto any budget that includes new taxes.

However, political promises mean nothing. And they can always weasel around the issue saying that it's not a new tax- just a new way of collecting an existing tax.

BaseballGuy

5:18 pm on Jun 27, 2009 (gmt 0)



If this does pass....

When would the law go into effect

and

Would every single advertiser out there (let's say in the Performics and CJ system) systematically bar working with California affiliates?

A bit confused as to what could possibly happen if the law goes into effect.

BaseballGuy

2:58 pm on Jul 10, 2009 (gmt 0)



I think Arnold vetoed it:

[gov.ca.gov...]

My faith in my government is ever so slowly
being restored. Millimeter by millimeter.

Does anyone "in the know" know if this is the end of it?

Or do we have to worry about another politician ignorantly supporting another tax bill like this?

JS_Harris

10:58 am on Jul 22, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Gov Schwarzenegger called the CEO of Overstock, Patrick Byrnen, and promised to Veto. In return Overstock, Blue Nile and Amazon took California affiliates off the chopping block, for now.

North Carolina wasn't as lucky, emails have gone out to all affiliates. The same is happening in Hawaii though a veto may be in the works there too.

The so called affiliate nexus language is indeed in place and the rest of the states are watching closely, now is the time to act.

Commission Junction also sent out emails yesterday suggesting all California affiliates get in touch with their congressman immediately because of the most recent events (emergency measures).

Long edit but... California is hurting right now. Word came out this week of 27,000 prison inmates being released, police stations letting go of a good percentage of the police force, schools (including universities) receiving dramatic cuts to funding, state parks closing, even the possibility that pot will be made legal to own, use and sell by anyone over 21 to raise tax revenue.

It's bad in California right now and over the next few months, as layoffs to cover these massive budget cuts are rolled out, it's likely to get worse. Affiliate marketers may not be able to scream loudly enough to stop this given the sheer volume of people losing their jobs. 990,000 kids just lost State subsidized insurance coverage for example, affiliates are low on the totem and congress is pouncing.

UPDATE: Overstock reinstated Hawaii affiliates as well, California affiliates were temporarily let go but within 24 hours were also reinstated. Amazon, blue nile and overstock all promise to let California affiliates go if the bills succeed.

farmboy

2:03 pm on Jul 22, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



California is hurting right now. Word came out this week of 27,000 prison inmates being released, police stations letting go of a good percentage of the police force, schools....

Government bodies always do this sort of thing. When money is tight, they always cut or threaten to cut essential or "emotional" services that people want - police, fire, roads, schools, etc. They scream about having no money but don't mention the $10 million they are still planning to spend on the frog museum or whatever.

Here in NC, while our legislature and Governor are seeking to tax sales from Amazon and other online retailers because the state is "broke", the wife of the Governor who just left office in January was given a created six figure job at a state university, millions were given to Dolly Parton's brother to open a theater, etc.

-----------------

I wonder what the net gain in revenue to states will be if they gain the sales tax on online sales but lose the income tax on affiliate commissions?

If I am an affiliate of Amazon and I work to generate a sale and earn a commission, my state gets a cut of that via income tax and the state didn't do anything but stand there with her hand out. But that's not enough, she wants more. It's amazing how often you hear of people talking about greedy businesses or greedy "corporations" when government is the posterchild of greed.

FarmBoy