California tells online retailers to start collecting sales taxes from
customers

Excerpts:

Beginning Friday, a new state law will require large out-of-state retailers
to collect sales taxes on purchases that their California customers make on
the Internet — a prospect eased only slightly by a 1-percentage-point drop
in the tax that also takes effect at the same time.



The new tax collection requirement — part of budget-related legislation — is
expected to raise an estimated $317 million a year in new state and local
government revenue.

But those taxes may come with a price. Amazon and online retailer
Overstock.com Inc. told thousands of California Internet marketing
affiliates that they will stop paying commissions for referrals of so-called
click-through customers.



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.


Many of about 25,000 affiliates in California, especially larger ones with
dozens of employees, are likely to leave the state, said Rebecca Madigan,
executive director of trade group Performance Marketing Assn. The affiliates
combined paid $152 million in state income taxes last year, she pointed out.


Read more here:
http://www.latimes.com/business/la-fi-amazon-tax-20110630,0,4344787.story


So, anyone actually think this will be the windfall CA says it will be?

J

-

Obama is a black mascot of Wall Street oligarchs and a black puppet of
corporate plutocrats. And now he has become head of the American killing
machine and is proud of it. - Cornel Wes

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