Aseembly Bill 178: California Affiliates Must Read

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wheinrome

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Nov 20, 2006
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My broke state of California is now attempting to follow New York states example and tax online merchants with Assembly Bill 178. This so called "Amazon Tax" has resulted in dozens of merchants overnight terminating relationships with New York affiliates driving them out of business or out of state.

A LLC or S-Corp or similar business entity in another state will not absolve you from your responsibility.


You can read more about this desperate and small business unfriendly bill here:

February 2, 2009 - Assemblymember Nancy Skinner announces legislation to close tax loophole and bring much needed revenue to California.


Keep in mind this has not passed yet so please WRITE a letter to your state legislators. I will follow up this post with the appropriate contact information.

Colorado here I come!
 


wheinrome said:
My broke state of California is now attempting to follow New York states example and tax online merchants with Assembly Bill 178. This so called "Amazon Tax" has resulted in dozens of merchants overnight terminating relationships with New York affiliates driving them out of business or out of state.

A LLC or S-Corp or similar business entity in another state will not absolve you from your responsibility.


You can read more about this desperate and small business unfriendly bill here:

February 2, 2009 - Assemblymember Nancy Skinner announces legislation to close tax loophole and bring much needed revenue to California.


Keep in mind this has not passed yet so please WRITE a letter to your state legislators. I will follow up this post with the appropriate contact information.

Colorado here I come!
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I hope people heed the warning and do something about it. If they don't it'll snowball.
 
volknet said:
Gah... Why don't they try cutting expenses (like no-freaking-bid contracts and caltrans) instead of just always taking more money...
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What would the three guys that stand around on every project do without a job?
 
So affiliates are going to have to pay tax on the comission they make ?
But arent the shop already paying the taxes ? err... i hate legal/accounting shit

From a legal perspective, who is right ?
I mean, is this unconstitutional ?

Aww man, every country just copy what the US does and especially canada, i hope this doesnt become standard everywhere...

Already when signing up to affiliate programs i see there is almost always additional steps/field for US residents...
 
this will become SOP for every state within five years.
go ahead and write your reps though. keep the dream alive.
 
Nevele is correct. No way that this will not pass, no matter how many letters your write or how many reps you call, no chance in hell the gov't is going to pass up on your hard earned dollars.
 
Well, like some NY affiliates. Pack up and move out if you are angered by the bill. Hopefully it'll keep other states from doing the same.
 
“During this unprecedented fiscal crisis we cannot afford to lose sales tax revenue from out-of-state companies when our own local businesses are struggling to keep their doors open.”
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As if this is actually going to keep the brick and mortars open. It's only going to piss off the consumers.

Edit: "AB 178 is expected to raise approximately $55 million in revenue per year. " And legalizing weed in CA is supposed to bring 1.5 Billion per year. I say we go nationwide with legalization.
 
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