California Sales Tax
July 1, 2011 by USA Post
California Sales Tax, California Governor, Jerry Brown, has approved a new sales tax on Wednesday that requires out of state companies to collect the California sales tax on purchases made online. California is one of many states apply sales tax, and the online retailer Amazon is advocated. Hours after the project was approved, Amazon over Affiliate nearly 25,000 contracts in direct response to the account.
The affiliate program allows small business owners to consumers refer to Amazon.com in exchange for a percentage of those particular purchase online shoppers. The new tax, which came into force yesterday, Amazon charges for any purchase from a reference site based in California – even if the actual store is located outside the state, according to Amazon Associates Team.
“We oppose this bill because it is unconstitutional and counterproductive,” said the Amazon Associates team in a letter to all affiliates in California. “It is with the support of the big box retailers, most of which are outside California, who seek to harm the affiliate advertising programs of their competitors.”
Governor Brown signed into law yesterday, along with other major budget cuts. The “Amazon tax” because it has been coined, is only part of the governor’s plan to balance the state budget.
“We have reduced our deficit and 15 billion dollars and has achieved financial balance this year,” said Governor Brown. “This is a great step forward. But California’s long-term, stability depends on our willingness to continue to pay off debts and live within our means.”
The Government expects that the sales tax law in line to build and 200 million per year. However, Amazon does not agree.
“Similar legislation in other states has led to job losses and income, and little, if any, new revenue,” the associated equipment. “We deeply regret that we must take this action.”
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