Posted by BOE Member George Runner at 12:00 am on Mar 21, 2011 2 Comments
On a party line vote the Assembly Revenue and Taxation Committee
this afternoon passed out Assembly Bill 153 by Assemblywoman Nancy
Skinner (D-Berkeley).
Although not surprised, I’m disappointed by the Committee’s
decision to move forward with a tax measure that will cost
California jobs and hurt state revenues. There are as many as
25,000 internet affiliate businesses based in our state that could
be wiped out by this bill.
Leading online retailers, including Amazon and Overstock, have
informed me that passage of this bill will force them to terminate
their relationships with their California-based affiliates.
Out-of-state retailers, with no physical presence in the
California, have no legal obligation to collect California’s sales
or use taxes. AB 153 is trying to redefine ‘physical presence’ to
include the use of online affiliate advertisers based in
California.
The bill simply won’t work. Out-of-state retailers will cut ties
with their California affiliates and continue selling to California
consumers. The only thing AB 153 does is kill up to 25,000
affiliate jobs in California. That’s the last… Read More