INTERNET MARKETING

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SMALL BUSINESS NEWS

1 July 2011

 

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California Internet Sales Tax

California has joined , New York, Colorado, North Carolina, Rhode Island, Illinois, and Arkansas in establishing laws to tax Internet sales made through Affiliates from online retailers who do not have a presence in their state.  The total is now seven states that have such law.  For example, amazon.com would have to collect state taxes from California residents based on sales generated by it’s affiliates in California even though it has no physical presence there.

California Governor Jerry Brown signed the bill into law on Wednesday, 22 June 2011. 

Affiliates are individuals or other businesses that have agreements with large retailers such as amazon.com and overstock.com, to get paid a percentage of the transaction when someone click on a link on their website that takes them to the large retailer’s website to complete a purchasing transaction.

According to The State Board of Equalization has estimated there are 25,000 affiliates in California.  As they’ve done in other states where such laws were passed amazon.com and other large online retailers are ending their relationships with affiliates in California.

You can find a copy of the California law at:   California Internet sales tax.

By Owen Daniels

 

 

 

 

 

 
 

 

  
 

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