30 Jun '11, 9pm

The Next Big Battle For Online Business; Sales Tax; California Becomes Latest

According to the Los Angeles Times a new California state law will require large out-of-state retailers like Amazon to collect sales taxes on purchases that their California customers make online.” In response, Amazon and Overstock.com plan to cease paying commissions to California Internet marketing affiliates for referrals. “About 25,000 affiliates live in California, especially larger ones with dozens of employees, are likely to leave the state, said Rebecca Madigan, executive director of trade group Performance Marketing Assn. The affiliates combined paid $152 million in state income taxes last year, she pointed out.” “California is the seventh and largest state in the country to pass a law to collect taxes on out-of-state Internet sales. “Illinois, Arkansas and Connecticut passed laws earlier this year, North Carolina and Rhode Island passed them in 2009 and New York ...

Full article: http://www.thedomains.com/2011/06/30/the-next-big-battle-...

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