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California Assembly Passes Amazon Internet Sales Tax Legislation – Lawyers Get Rich
The Democrat majority and one Republican in the California Assembly passed the legislation yesterday.The last of three bills aimed at getting the Seattle giant and other out-of-state online retailers to pay sales tax passed the Assembly on Wednesday afternoon.
“It’s something we’ve been working on for years,” said Assemblywoman Nancy Skinner, D-Berkeley, who authored the bill. “But this is the first time that so many businesses up and down the state are supporting it.”
A companion bill, authored by Assemblyman Charles Calderon, D-Whittier (Los Angeles County), passed the full floor on a 47-16 vote on Tuesday.
“This bill levels the playing field for businesses in California,” said Assemblyman Bill Berryhill, R-Ceres (Stanislaus County). “Not a day goes by when I don’t hear from businesses about their ability to compete.”
Which is what supporters of the so-called e-fairness legislation have been shouting from the rooftops for years, despite vetoes from former Gov. Arnold Schwarzenegger and dire threats from Amazon.com (2010 profit: $34 billion) and Utah’s Overstock.com to pull their affiliate business out of the state.
So, what comes next?
Senate action on the two Assembly bills, AB 153 (50-21- 9) and AB 155 (52-20 -8) and Assembly Action on SB 234 (22-17). Then the complimentary legislation if passed would go to Democrat Governor Jerry Brown. But, these bills passed with simple majority votes and some maintain that these “new” taxes fall under the jurisdiction of California Proposition 26, which requires a super legislative majority in order to pass.
I smell a lawsuit and a state court case, unless Governor Jerry Brown vetoes these bills, like Governor Arnold Schwarzenegger did in the past two legislative sessions.
In the meantime, if the bills become law, the actions should come swift from Amazon and the other internet sales tax targets, as they will pull their business out of California to reduce their liability.
And, as to the nexus issue, they will file probably a federal lawsuit.
This issue is far from resolved and I see the only revenue California will receive will be for its legal staff and judiciary.
Kind of a waste for California taxpayers.
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Flap’s California Morning Collection: June 1, 2011
A morning collection of links and comments about my home, California.
Superstore Projects Could Face New Hurdle
Jerry Brown Announces Budget Cuts at California Department of Corrections and Rehabilitation HeadquartersCalifornia Assembly OKs AB 155 to Tax Online Retailers
Internet Sales Tax bill Advances in California Legislature
Enjoy your morning!
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Amazon Tax Legislation Coming Up for Votes in the California Legislature
Looks like Assemblywoman Nancy Skinner and Senator Loni Hancock are pushing their respective bills forward in the California Legislature. You remember them – tax increasing, job killing and probably unconstitutional laws.Elsewhere at the Capitol, Democratic Assembly members Nancy Skinner and Charles Calderon and Sen. Loni Hancock tout measures they say will level the playing field for California businesses competing with online retailers such as Amazon.com.
The lawmakers will be joined by Bill Dombrowski, president and CEO of the California Retailers Association; Dean Murakami, president of the Los Rios Community College Federation of Teachers; and others at the news conference, which starts at 11:30 a.m. on the Capitol’s south steps.
Skinner’s Assembly Bill 153 and Calderon’s Assembly Bill 155 may come up for a vote Thursday in the Assembly Appropriations Committee. Hancock’s Senate Bill 234 passed the Senate 22-17 on May 5 and is now before the Assembly.
I guess the Democrats want to force the issue and tie California up in costly federal litigation, while killing California jobs, in the meantime. The California Legislature may impose and Democrat Governor Jerry Brown may dispose of this matter. But, this entire matter will go to the federal courts, if the Governor signs the bill(s).
Yeah and SB 234 which passed the California State Senate, pretty much grants authority to the California Board of Equalization to tax anything they deem constitutional under federal law – which means just about everything. Way to go California Legislature and Democrat majority, pass the buck to another elected agency to raise taxes for you.
Sheesh…..
See you in court, where more of my taxpayer money will be expended for no good reason.
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eBay Says Let’s Make a Deal to California’s Internet Sales Tax Legislation – Part TwoAn Amazon Tax Lesson for California Legislators – Businesses Move and Job Loss Occurs
eBay Says Let’s Make a Deal to California’s Internet Sales Tax Legislation
Democrat Senator Dick Duban to Introduce Bill to Tax Internet Sales
Poll Watch: 63 Per Cent Oppose Taxing Online Transactions
Video: California and the Amazon Internet Sales Tax
Video: How Amazon Internet Sales Tax Legislation Hurts California Small Business
Amazon Internet Sales Tax WILL Require Super Majority in California Legislature
Video: California Board of Equalization Casts Doubt on Amazon Internet Sales Tax Legislation
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eBay Says Let’s Make a Deal to California’s Internet Sales Tax Legislation – Part Two
As I said before eBay doesn’t care much for Amazon.com but business is business.
Unsurprisingly, eBay has not been enamored with such efforts which would hit eBay sellers, and has been seeking to work into legislation a threshold designed to ensure that at least some of its out-of-state sellers will not be subject to California sales/use tax collection and remittance obligations where they sell to customers in the Golden State (California-based sellers who sell to Californians are already on the hook).
A possible threshold of $10,000 a year or less in sales to Californians has been reported, but sources say that eBay and/or some of its sellers want that limit raised higher– potentially up to $2 million per year.
EBay has its California sellers engaged in a grassroots lobbying effort aimed at forcing amendments to the legislation, which would defang it. No doubt eBay sellers located outside of California, who are currently not obliged to collect and remit sales tax on purchases made by Californians, are ecstatic about this. California-based sellers would not benefit from building in a sales threshold, though, especially a high one that could tilt the eBay marketplace distinctly to the advantage of out-of-state sellers. However, their legislators are being urged to make amendments that, if put through, could seriously reduce the already rather pitiful revenues that backers of the legislation claim they would obtain by ramming it through.
The very best case scenario, according to a Board of Equalization staff analysis produced earlier this year, was that this “revenue
enhancement” measure would bring in a measly $200-or-so million maximum in 2012-13.Let’s see as we repeat – no real, substantive tax revenue for California, a loss of California jobs and a costly litigation. The Skinner Bill (AB 153) et. al is a loser all around.
But, it WILL proceed because the POLS will milk those who have a stake in the legislation for campaign contributions.
Eventually, this will die a quiet, but expensive death.
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An Amazon Tax Lesson for California Legislators – Businesses Move and Job Loss Occurs
eBay Says Let’s Make a Deal to California’s Internet Sales Tax Legislation
Democrat Senator Dick Duban to Introduce Bill to Tax Internet Sales
Poll Watch: 63 Per Cent Oppose Taxing Online Transactions
Video: California and the Amazon Internet Sales Tax
Video: How Amazon Internet Sales Tax Legislation Hurts California Small Business
Amazon Internet Sales Tax WILL Require Super Majority in California Legislature
Video: California Board of Equalization Casts Doubt on Amazon Internet Sales Tax Legislation
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An Amazon Tax Lesson for California Legislators – Businesses Move and Job Loss Occurs
Goerge Will’s column today illustrates the point that maybe the “Amazon Tax” may not be all that it is touted to be.Tim Storm, an Illinois businessman until a few weeks ago, is now a Wisconsin businessman. Herewith a story about how states can reduce revenue by trying to increase them and about the economic benefits of federalism.
Storm, 42, is founder and chief executive of FatWallet.com. The company, until recently one of about 9,000 Illinois “affiliates” of Amazon.com, directs online shoppers to online retailers, which often pay affiliates commissions for referrals that result in sales. Storm’s company, which has 54 employees, used to be located in Rockton, Ill., but now is five miles up the road in Beloit, Wis.
One reason online sales are brisk is that the retailers are not required to collect state sales taxes. In 1992, the U.S. Supreme Court held that such taxes must be collected only by companies that have a “substantial nexus” — basically, a brick-and-mortar presence — in the state. Under this rule, Amazon collects sales taxes in only five states.
Illinois, comprehensively misgoverned and ravenous for revenue, has enacted what has come to be called an “Amazon tax.” It requires Amazon and other online retailers to collect the state’s sales tax. Amazon and many other retailers responded by severing their connections with their Illinois affiliates.
Storm responded by relocating to Beloit. No one knows how many other Illinois affiliates of the thousands of online retailers — transactions with Amazon are less than 1 percent of FatWallet’s business — will lose revenue, pay less in taxes, cut jobs or leave the state. When Texas sent Amazon a bill for $269 million because of the “nexus” of its Dallas warehouse, Amazon decided to close the warehouse.
Read all of the piece.
I understand that the California Democratic Party is voting on a resolution today that supports the “Amazon Tax” in California. It would be a mistake for this legislation to pass, as I have discussed many times before.
Look at Illinois and Texas…..
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eBay Says Let’s Make a Deal to California’s Internet Sales Tax LegislationDemocrat Senator Dick Duban to Introduce Bill to Tax Internet Sales
Poll Watch: 63 Per Cent Oppose Taxing Online Transactions
Video: California and the Amazon Internet Sales Tax
Video: How Amazon Internet Sales Tax Legislation Hurts California Small Business
Amazon Internet Sales Tax WILL Require Super Majority in California Legislature
Video: California Board of Equalization Casts Doubt on Amazon Internet Sales Tax Legislation
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eBay Says Let’s Make a Deal to California’s Internet Sales Tax Legislation
Amazon.com et. al. should not feel bad – after all it is just business, right?“Yes, I’ve met with eBay quite a lot,” said Assembly member Nancy Skinner (D), who introduced the bill. Skinner told Tax Analysts that eBay is concerned about the proposal’s impact on lower-volume sellers, and the two sides have discussed raising the $10,000 threshold.
Internet auction giant eBay Inc. is negotiating language in a proposed California “Amazon” law (AB 153) in hopes of reducing the number of its sellers that could be required to collect sales taxes.
The click-through nexus legislation would require remote sellers to collect state sales taxes if they make $10,000 or more in annual sales through California affiliates that receive a commission. Much of the attention has centered on Amazon.com, but eBay — a California-based company — also receives commissions from its sellers, who could then be required to remit California sales taxes.
“We hope to come to a threshold that they feel good about,” Skinner said. “But I’m certainly not going to be making the law ineffectual.”
This entire exercise which will lose California jobs and provide NO new measurable tax revenue is looking more and more like a “JUICE BILL.”
The divide and conquer of business interests, the campaign contributions, the never ending amendments and tweaks to the bills. My God, no wonder American business is so fed up with the political process – particularly the Democrats in the California Legislature.
So, the legislation will linger on and Assemblywoman will have all the attention and PAC money the business interest will provide.
In the meantime, the Amazon.com and other business sales affiliates will sweat out whether they will have a job or not.
How disgraceful…..
Previous:
Democrat Senator Dick Duban to Introduce Bill to Tax Internet SalesPoll Watch: 63 Per Cent Oppose Taxing Online Transactions
Video: California and the Amazon Internet Sales Tax
Video: How Amazon Internet Sales Tax Legislation Hurts California Small Business
Amazon Internet Sales Tax WILL Require Super Majority in California Legislature
Video: California Board of Equalization Casts Doubt on Amazon Internet Sales Tax Legislation
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Democrat Senator Dick Duban to Introduce Bill to Tax Internet Sales
Senator Dick Durbin (L) and Senate Majority Leader Harry Reid listen to a fellow senator speak about the budget in the Capitol in Washington April 7, 2011
Yeah, this is all the American economy needs – more taxes.
A Democratic senator is preparing to introduce legislation that aims to end the golden era of tax-free Internet shopping.
The proposal–expected to be made public soon after Tax Day–would rewrite the ground rules for Internet and mail order sales by eliminating the ability of Americans to shop at Web sites like Amazon.com and Overstock.com without paying state sales taxes.
Here we go for a national sales tax and/or a Value Added Tax (VAT) like in Europe. The Democrats are tax and spend socialists who cannot resist taxing Americans blind.
And, for what?
Get this: FAIRNESS
“Why should out-of-state companies that sell their products online have an unfair advantage over Main Street bricks-and-mortar businesses?” Durbin said in a speech in Collinsville, Ill., in February. “Out-of-state companies that aren’t paying their fair share of taxes are sticking Illinois residents and businesses with the tab.”
Fair share of what?
This is a tax grab, plain and simple. And, a disaster for the economy.
What Democrats like Durban really want is MORE tax revenue that they can redistribute to their constituents in order to buy votes.
Just say NO to internet sales taxes at the state and federal level.
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Poll Watch: 63 Per Cent Oppose Taxing Online TransactionsVideo: California and the Amazon Internet Sales Tax
Video: How Amazon Internet Sales Tax Legislation Hurts California Small Business
Amazon Internet Sales Tax WILL Require Super Majority in California Legislature
Video: California Board of Equalization Casts Doubt on Amazon Internet Sales Tax Legislation
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Poll Watch: 63 Per Cent Oppose Taxing Online Transactions
According to the latest Rasmussen Poll.Americans are used to being taxed for good and services they purchase in person, but they remain opposed to carrying that over to the online world.
A new Rasmussen Reports national telephone survey finds that 63% of American Adults oppose the federal government taxing goods and services on the Internet. Twenty-four (24%) favor online taxation, while 13% are undecided about the idea.
Findings have not changed much from a year ago, when 61% opposed such taxes, while 20% approved.
Majorities of Americans across all demographic categories oppose taxing goods and services on the Internet. But Democrats (31%) like the idea more than Republicans (19%) and adults not affiliated with either of the major political parties (22%).
This is not too shocking and why the California Legislature is struggling with Democrat sponsored legislation to tax online sales, the so-called Amazon Tax.
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Video: California and the Amazon Internet Sales TaxVideo: How Amazon Internet Sales Tax Legislation Hurts California Small Business
Amazon Internet Sales Tax WILL Require Super Majority in California Legislature
Video: California Board of Equalization Casts Doubt on Amazon Internet Sales Tax Legislation
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Video: California and the Amazon Internet Sales Tax
Here is a good video that summarizes the conundrum facing the California Legislature when considering the Amazon internet sales tax – the loss of revenue and California jobs.
I have written more about this issue:
Video: How Amazon Internet Sales Tax Legislation Hurts California Small Business
Amazon Internet Sales Tax WILL Require Super Majority in California Legislature
Video: California Board of Equalization Casts Doubt on Amazon Internet Sales Tax Legislation
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Video: How Amazon Internet Sales Tax Legislation Hurts California Small Business
California Board of Equalization member George Runner explains how the Amazon Internet Sales Tax Legislation which I have mentioned in numerous posts hurts California and California small businesses in particular.