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SMALL BUSINESS NEWS

30 October 2011

 

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The Amazon/California Internet Tax Deal

         

On June 28, 2011, California Governor Jerry Brown signed ABx1 28, the Golden State’s Amazon Tax. The law stipulated that out-of-state Internet businesses with in-state affiliates have to collect sales taxes immediately from California residents who buy their products.  In response to this law Amazon threatened to stop doing businesses with any affiliates residing in the state of California in order to avoid having to pay the tax.
 

On September 9, 2011 a deal was reached between Amazon and the state of California.  California.  California implemented a new law that extended the collection of taxes to begin September 15, 2012.
 

This is good news for all Internet businesses. 
 

Source:  The text of the bill (http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0151-0200/ab_155_bill_20110909_amended_sen_v95.html)
 

By Owen Daniels

 

 

 

 

 

 
 

 

  
 

 

 

 

 

 

 

 

 

 

 

 

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