eBay Warns Affiliates of California Sales-Tax Legislation

[The Straight Story]

eBay Warns Affiliates of California Sales-Tax Legislation


eBay warned its affiliates that the state of California is considering legislation similar to the "Amazon Tax" bill that passed in New York last year. California Assembly Bill 178 would require retailers to collect California sales tax if they compensate affiliates and publishers located in the state.

eBay said the bill was being watched closely by other states, "who are looking at ways to drive more tax revenue so it could have a cascading effect on the affiliate industry if it were passed." The eBay Partner Network blog recommended that affiliates who live in California consider writing to their representatives to oppose this legislation.

New York passed Tax Law § 1101(b)(8)(vi), last April, requiring online sites such as Amazon.com and Overstock.com to collect New York sales tax because their affiliates residing in New York count as a physical presence. Amazon had sued New York, arguing that that the Commerce Clause of the US Constitution prevented the state from imposing tax-collection obligations on out-of-state entities absent a "substantial nexus" with the state.

Melanie Seery, an affiliate from New York, wrote on her blog that she believed California AB 178 would be "even more devastating than the NY bill."

http://www.auctionbytes.com/cab/abn/y09/m04/i06/s01

If it exists, tax it. If it moves or is transferred, tax it. If you don't like other people doing something, tax it.

Taxes seem to go up faster than increase in wages. So I say we tax taxes and use the proceeds to fund everything :)

[aquart]

1. The retail tax base is shot to hell.

Anyone who can is buying online and avoiding taxes forcing more stores to close. As retailing moves online, the states HAVE to tax it because they still won't put fair taxes on the rich and money has to come from somewhere.

[county worker]

2. I've bought a lot of things on Ebay in California from Californians and they charged me sales tax.

Many sellers on Ebay charge sales tax on items bought by people in the sellers state. They usually post a disclaimer saying so.

[lies and propaganda]

3. I am aCalifornia retailer, mostly online..

and i figure it into the prices and just pay the taxes myself. Its a bit easier for me taht way, especially at live craft shows where asking for some odd change is really inconvenient.