Firenze Sage: Amazon won’t pay CA sales tax …

To avoid taxes, CA affiliate business leave state

Beginning Friday, a new state law will require large out-of-state retailers to collect sales taxes on purchases that their California customers make on the Internet.

The new tax collection requirement — part of budget-related legislation — is expected to raise an estimated $317 million a year in new state and local government revenue.

But those taxes may come with a price.

That’s because the new requirement applies only to online sellers based out of state that have some connection to California, such as workers, warehouses or offices here.

Both Amazon in Seattle and Overstock in Salt Lake City have said that their affiliates will have to move to another state if they wanted to continue earning commissions for referring customers.

Many of about 25,000 affiliate businesses in California, especially larger ones with dozens of employees, are likely to leave the state. The affiliates combined paid $152 million in state income taxes last year.
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Who bets that the estimated 317M is going to be half of that? And, 10,000 jobs lost?

FirenzeSage48@aol.com

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