Town Square

Post a New Topic

Fairness online

Original post made on Aug 22, 2009

Last June, both the State Assembly and Senate approved a budget containing an e-fairness provision, which would have clarified state law and required out-of-state online retailers with connections in the state via online affiliates to collect and remit sales tax. It was estimated that the provision would have raised $176 million per year for our cash-strapped state, but on June 30, Gov. Arnold Schwarzenegger vetoed the measure after online giants, including Amazon.com and Overstock.com, had threatened to de-list their affiliates in the state if the final budget contained the e-fairness provision. That's just in uncollected sales taxes on internet book sales.

This story contains 123 words.

If you are a paid subscriber, check to make sure you have logged in. Otherwise our system cannot recognize you as having full free access to our site.

If you are a paid print subscriber and haven't yet set up an online account, click here to get your online account activated.

Comments (1)

Like this comment
Posted by Daniel Ballon, Ph.D., Senior Policy Fellow, Technology Studies, Pacific Research Institute
a resident of another community
on Aug 22, 2009 at 1:01 am

The Performance Marketing Alliance estimates that 25,000 California small businesses earned $1.3 billion in 2008 from advertising relationships with out-of-state companies. If advertisers terminate these relationships, the state could lose $123 million in income taxes. Because advertising income drives the creation and growth of countless online services, this sudden loss of income could devastate Silicon Valley and compromise California's status as a leader in high-tech innovation.

Therefore, expanding the definition of nexus results in no benefit for the state, but incurs considerable harms. Desperate to end the budget crisis, the legislature advanced this proposal as a fix existing only on paper. By insisting on budget figures that accurately reflect reality, the governor has made an important commitment to find enduring solutions that “keep jobs and businesses in California." After rejecting the nexus measure, Governor Schwarzenegger personally contacted Overstock's CEO and convinced him to reinstate all advertising relationships with California businesses.

from here: Web Link


Don't miss out on the discussion!
Sign up to be notified of new comments on this topic.

Email:


Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: *

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields

Playing Catch-up
By Tom Cushing | 30 comments | 3,182 views

Walmart
By Roz Rogoff | 4 comments | 1,103 views

Pleasanton Costco appears headed to crowded November ballot
By Tim Hunt | 11 comments | 988 views