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Yes, instead of applying the physical presence test for sales tax, SB 234 would apply a substantial nexus test. The opponents argue that this would require Ama
by scottlay 15y ago
Yes, instead of applying the physical presence test for sales tax, SB 234 would apply a substantial nexus test. The opponents argue that this would require Amazon to collect sales tax if it maintains its Affiliates program, as they are arguably resellers/referrers located within California.
- kposehn 15y agoThat plus any sort of contracting relationship, electronic representation, marketing, etc. They struck the explicit wording and instead opted for a very broad wording, so pretty much everything qualifies.
- scottlay 15y agoPersonally, this is a tough one for me. I live in the college town of Davis, and love my local bookstore and the downtown with small shops. That said, buying books on Amazon with Prime is tempting and, at 8.75% sales tax is another plus. (Of course, the biggest is buying electronics...) Also, the loss of tax revenue is killing the colleges I represent, but this bill is a band-aid solution and a comprehensive federal one that applies to all states equally is probably needed.
- kposehn 15y agoAgreed, as such we all support streamlined sales tax; pretty much the best way to fix this IMHO.