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Wednesday, June 24, 2009
Law - More on "Amazon Threatens Cuts Over State Taxes "
Updating this ILB entry from June 19th, Geoffrey A. Fowwler of the WSJ has a story today headed "Amazon Warns Calif. Lawmakers on Sales Tax Bill ." It begins:
Amazon.com Inc. sent a letter to California legislators on Monday threatening to end its business with marketing affiliates in the state if legislation passes forcing the Seattle e-commerce company to collect sales tax from California customers.The letter follows similar threats Amazon made last week in North Carolina and Hawaii, after those states moved closer to passing legislation that would force e-commerce companies to collect tax if they have online marketing affiliates – people who get a sales commission from links on their own Web sites – in the state. Amazon won't say how many people are in its affiliates program.
Amazon's letter to California Gov. Arnold Schwarzenegger and leaders of the state assembly and senate called the proposed tax legislation "unconstitutional." The proposed law, AB 178, "ultimately would require sellers with no physical presence in California to collect sales tax merely on the basis of contracts with California advertisers," wrote Amazon's vice president for global public policy Paul Misener in a copy of the letter reviewed by The Wall Street Journal.
Posted by Marcia Oddi on June 24, 2009 08:28 AM
Posted to General Law Related