where there’s smoke there’s forum fire
Ok KR is panicking on some law changes, Im not familiar with US or California's laws and to be honest dont feel like reading all that,
can some one who is more or less following all that explain what are they trying to change and why its bad
many thx
California is trying to pass a law that would collect tax on internet sites, particularly out of state sites. He's in the state himself but I believe his blog and some of his other stuff is out of state.
We're see if this passes. Not much that governor Scwartzenegger has attempted to put through has passed yet. Not even the state budget. California could be out of money in less than a month.
If I understand what he's saying:
If an out-of-state online retailer has advertising affiliates in California, they have to pay California sales taxes on every purchase made by a customer in California.
Ken Rockwell's Web site is an advertising affiliate of several large online retailers based in other states.
So, if the law passes, the online retailers likely would drop KR as an affiliate to avoid paying those sales taxes. KR would lose lots of income. And California would lose the income taxes KR pays on that income.
So, if I am interpreting this correctly, then it doesn't look like a good move for California.
DISCLAIMER: I don't live in California, I'm not a tax lawyer nor do I play one on television. I don't even know what tax lawyers look like, or what you feed them if one turns up scratching at the back door. I apologize if I got this wrong.
It's not a particularly fair measure as it really single's out a speciffic industry (in this case Advertising Based Bloggers). If they just said "You have to pay sales tax on all internet purchases" then it would make a lot more sense (and raise more money). As drafted, its only effect will be to send the bloggers elsewhere, thus depriving California of their income tax revenue. The benefit of not having to charge sales tax is far more than the value of affiliate advertising. Nobody would sacrifice the California market to pick up some incremental sales elsewhere.
thx guys short and to the point
yeh kinda stupid law totally agree with :Willis:
If you Google "amazon" and click on the news tab today, you will see numerous articles about Amazon dropping all its affiliates in North Carolina, which just passed similar legislation.
Bloomberg News, Market Watch, Associated Press, Wall Street Journal and the Raleigh News & Observer all have articles running today if you're interested.
I'm not sure we're allowed to post links here. If we are, I'll post a few.
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