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California tells online retailers to start collecting sales taxes from customers

Reporting from Sacramento—

Shopping at Amazon.com Inc. and other major Internet stores is poised to get more expensive.

Beginning Friday, a new state law will require large out-of-state retailers to collect sales taxes on purchases that their California customers make on the Internet — a prospect eased only slightly by a 1-percentage-point drop in the tax that also takes effect at the same time.

http://www.latimes.com/business/la-fi-amazon-tax-20110630,0,...

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Amazon just dropped their CA affiliates. The number was around 10000. Overstock has also now just ended all their CA affiliate programs. Estimates of affiliates losing this type of income is around 25,000 people.

http://www.techrockies.com/overstock-drops-california-affili...

The CA government is intent on impovershing the whole state. What a mess. A lot of people in CA are now online posting about moving out of state.

Legalities

I think that what this means is that because Amazon is no longer in California - they have no warehouses, offices, or salespeople (the affiliates) in the state, the state has no jurisdiction over them, meaning, CA can't force Amazon and their affiliates everywhere else to collect sales taxes on purchases by California residents.

So, for California residents, we can continue to order products, knowing that they will come from out-of-state sellers who won't be collecting taxes.

It will be interesting to see what happens next... Will CA blink and rescind under pressure from the affiliates who've been cut off? Will other states think twice about forcing businesses to be tax collectors (and thieves)?

Or, will the states led by CA ask the federal government to pass a federal law? At least one of these is in the works.

What do you think? http://consequeries.com/

I fled California

I am a fifth generation Californian on my mother's side. A lot of history there. BUT I fled California in 2005. I will NOT move back ever. That state has been taken over by crazy people. Yes, bent on completely destroying the state. Taxes don't solve problems. They just impoverish and make the government richer. SICK!!!!

Healthnut4freedom

The lip of truth shall be established forever: but a lying tongue is but for a moment...Lying lips are abomination to the LORD: but they that deal truly are His delight. Prov 12:19,22