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Thursday, June 30, 2011

AB 155

AB 155 (Charles Calderon)
Use Tax: Retailer engaged in business
This is the death of Amazon affiliates in CA. So rather than put in coding to charge sales tax, Amazon pulled out. This is not the first state that Amazon has pulled out of. They have also pulled out of Rhode Island, and North Carolina for the same reason. Now the playing field is even for the brick and mortar stores who have to charge sales tax within these states.

Now the question is raised, what about Google? As a California based Company, will they now be forced to tack on CA sales tax to every californian who purchases Ad Since or Ad Words or is it a tax just for the CA representatives?

What about other affiliate marketing? Is that whole income revenue going to morph or get dumped in the change? The Internet is changing once again, as the government wants their piece of the pie.

I guess on this one, we will have to stay tuned.