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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MechaCrashThey aren't being held accountable because *this is what GamerGate is really about.* Hatred and harassment under a thin veneer of concern for ethics; it's a rotten movement right down to the core. Related: http://tinyurl.com/o5mamgn10/21/2014 - 1:53am
james_fudgeodd why would they delete pro vita comments?10/21/2014 - 12:50am
Neo_DrKefkaI am a little disturbed that members of #GamerGate are supporting and not holding its same members accountable when they say remarks that are unacceptable!10/20/2014 - 11:39pm
Neo_DrKefkaSome #GamerGate people are defending @kingofpol many are however lashing out at him but if we held Sam Biddle accountable and Gawker so must we hold @kingofpol and #GamerGate10/20/2014 - 11:30pm
Neo_DrKefkaA big name in the Gamergate movement Kingofpol uses a offensive term about autistic people and in turn the entire GamerGate community lashes out at him. We do not need false leaders who think they can say anything https://twitter.com/Kingofpol10/20/2014 - 11:07pm
Papa MidnightMP, honestly, I'm struggling to make heads or tales of the events being outlined in that reddit thread. I've never heard of Siliconera before, either.10/20/2014 - 10:48pm
MaskedPixelantehttp://www.reddit.com/r/vita/comments/2jbn6u/former_siliconera_moderator_leaks_screenshots_of/ Siliconera mods accused of deleting user comments that were pro Vita.10/20/2014 - 9:23pm
quiknkoldhttp://www.diamondbackonline.com/opinion/article_3fbc52ec-57eb-11e4-ba91-0017a43b2370.html10/20/2014 - 9:16pm
Neo_DrKefkaId love to see people come 2gether whether your 4 or against gamergate to gather 2gether and support an anti bullying charity and I would love to see a pro and anti gamegate debate on a neutral platform that promotes discussion and solutions10/20/2014 - 8:33pm
Neo_DrKefkaWhen someone was seriously hurt by a violent altercation. They have a prospective that people who have not had this experience lack. Bullying is a serious issue10/20/2014 - 8:30pm
Papa MidnightStraw Man to the fullest, but it gets the point across.10/20/2014 - 8:26pm
Papa Midnighthttp://i.imgur.com/dw0YPon.png10/20/2014 - 8:25pm
quiknkoldby doing something, Charitable Donations is an example.10/20/2014 - 8:06pm
quiknkoldAndrew : I dont accept any worded apology unless I can look the person in the eye when they say it. For me, he'd either have to make a video so I could read his bodylanguage, or actually do something. actions speak louder than words.10/20/2014 - 8:04pm
quiknkoldwell if they are looking for social pollution, Twitter is a great breeding ground for it. Its a breeding ground for deviance.10/20/2014 - 8:03pm
Andrew Eisenquiknkold - He had three tweets worth of apology the following day.10/20/2014 - 8:00pm
quiknkoldyou know, people keep saying Biddle's comment was sarcasm, but the thing is, Sarcasm doesnt translate well in Tweets. I took his words as really hateful, and unless I see an honest apology, I'm not going to be happy with him.10/20/2014 - 7:38pm
Matthew WilsonI doubt it will change much.10/20/2014 - 7:21pm
MaskedPixelantehttp://www.bbc.com/news/technology-29689949 Google's current piracy fighting plan.10/20/2014 - 6:58pm
Andrew EisenYikes. http://boingboing.net/2014/10/20/vultures-circle-gamergate.html10/20/2014 - 6:25pm
 

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