California Promises No Sales Tax Due To Affiliates To Keep Amazon/Overstock Affiliates Happy

from the someone's-been-watching dept

Mon, Jul 6th 2009 7:32pm — Mike Masnick

In the last few weeks we've seen companies like Amazon drop affiliates in a bunch of different states, due to proposals in cash-strapped state legislatures to force the online retailers to collect sales tax even if there are only affiliates in that state. Apparently, California politicians put forth a similar proposal, and following threats from Overstock to drop its local affiliates, Governor Schwarzenegger has promised that no such bill will pass (thanks Eric Goldman). It seems that the willingness for these online retailers to cut off affiliates (and the anger that creates among those affiliates) caught the attention of at least someone with power in California.

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Filed Under: affiliates, california, sales tax, taxes
Companies: amazon, overstock

15 Comments

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Anonymous Coward, 6 Jul 2009 @ 7:45pm

Wow
I had no idea that my state leaders had any idea about anything going on beyond Sacramento. What is this feeling I'm experiencing? Is this a twinge of hope that maybe there exist political leaders who aren't completely oblivious?

Nope, just heartburn....

But I'm glad the state hasn't become so desperate for money as to defy common sense (affiliates = employees?).... or defy it again, at any rate.
Maybe that feeling is a small twinge of hope after all?
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Jason Buberel (profile), 6 Jul 2009 @ 9:17pm

Hurrah for CA!
This was a surprise indeed. CA needs all the business-friendly policies it can get right now, and this is a good step in that direction.

Heck, the combination of Amazon Prime (essentially free shipping) and no physical presence in the state (no sales tax) is what makes Amazon.com such an amazingly good deal for CA shoppers.
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Joel, 6 Jul 2009 @ 10:59pm

Power?
You make the mistake that Arnold has any power left in this state. He can't get a budget passed and the state has started to issue IOU to business partners because it is broke. I would guess that this is just a posturing point for the Governator
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Anonymous Coward, 6 Jul 2009 @ 11:19pm

Another reason CA has a huge deficit . . .
CA is so desperate for money, that they fined me $250 after 25 years in business, with an A+ Better Business Bureau Rating, saying my type of business must pay $165 per year, to register with them. Even though they don't require any test, to prove we know anything about our business! And all of the money they collect for it, just goes to support this bogus department!

Tell us how you've have been screwed by CA too.
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Anonymous Coward, 7 Jul 2009 @ 12:18am

Re: Another reason CA has a huge deficit . . .
Dude, seriously!??? $250 for 25 years and you can't sleep on it? Your "money" problem is worse than CA.
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Jamie, 7 Jul 2009 @ 12:45am

Taxing Employment
California loves to tax employment. From the 1.5% payroll tax in SF (pretty much the most insane business tax in the world, why would you tax businesses more for hiring people?) to extremely high income and sales taxes that drive up wages California is pretty much the worst place to start a company. I wish we could pick up Silicon Valley and move it to Nevada, we would all be so much better off.
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Anonymous Coward, 7 Jul 2009 @ 1:26am

Re: Re: Another reason CA has a huge deficit . . .
My point is that it's just another unnecessary tax, that will cause more business to leave CA & increase our deficit even more.
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John Doe, 7 Jul 2009 @ 4:53am

Re: Taxing Employment
It is funny to see Californians complaining. Don't you realized that California is going to be the model for our new Socialist government? Never mind that it is failing miserably, we will rush headlong into a national version and we will fail even more miserably. It is a sad time for our country.
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Mechwarrior, 7 Jul 2009 @ 5:59am

Re: Re: Taxing Employment
California needs a public vote with 2/3rds majority (I believe with at least 50 percent participation) to get ANYTHING done. If its anyones fault, its all the Californians too busy thumbing their noses to make the tough decisions.
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Roger Ervin, 7 Jul 2009 @ 7:33am

Budget and Taxes
Now if only we can get Karen Bass to resign since she's stopped going to meetings. That may get one more vote in finally obtaining and passing a budget.
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Anonymous Coward, 7 Jul 2009 @ 8:53am

Re: Re: Re: Taxing Employment
You can thank your fellow republicans in 1978 for that :)
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BigFN-J (profile), 7 Jul 2009 @ 11:00am

Its nice to see someone like Arnold in California recognize that insane taxation drives business away. It is also nice that Amazon is not scared of taxation legislation and is large enough to just "drop" affiliates that will be a hassle and put a damper in political grabs for "free" money.
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PPNSteve (profile), 7 Jul 2009 @ 11:04am

Re: Another reason CA has a huge deficit . . .
Well I run my business from California too.. its really not that bad, really! We get paid in IOU's with a whopping 3% interest.. our base rate for (good) credit clients is 12%

*sigh*

BTW, would you take this IOU instead of cash for my payment?

The Governator has to deal with these bought and paid for idiots in the legislature

OT: I'm all for this no tax as we also affiliate sell thru amazon (and others) on some of our sites.
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Anonymous Coward, 7 Jul 2009 @ 3:07pm

Re: Re: Taxing Employment
You can thank Ronald Reagan and Howard Jarvis for creating the current mess. Without them, we might have a pay-as-you-go-system in CA. As for the nation, once again you can thank the greed creed of the Republicans and the spineless duplicity and complicity of the Democrats for our present bankruptcy. Long live Oligarchy!
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California Blogger, 18 Jan 2010 @ 8:01pm

No More California Taxes!
California can cut expenses instead of taxing folks like us who slave over internet keyboards! Good move which prevented affiliate protests in the streets of California, but for how long will affiliates be "tax-free"?
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