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Thread: California nexus law threshold

 
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  #1  
Old September 20th, 2011, 07:26 PM
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Found below quote from LinkShare site
"The law requires Advertisers to collect sales tax under certain circumstances, including those Advertisers working with Publishers in California if both of the following conditions are met: 1) total sales through your Publishers in California is $10,000 or more in the previous 12 months and 2) total sales in California is $500,000 or more in the previous 12 months through all channels collectively."

Does that mean that our company, non-CA merchant, will need to collect sales tax if we made $500,000 or more in sales from selling to CA customers?
If that's true, does it apply to other states, like NY?

Thanks
  #2  
Old September 20th, 2011, 08:21 PM
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The answers is...........maybe.

Under the law as it exists today, the answer is yes.

But, AB155 is on the governor's desk, awaiting action. If signed, it will stay the tax collection requirement for one year, and if the requirement does go into effect next year, that threshold amount will be raised to $1,000,000.

Sales taxes are legislated by each individual state. New York has its own rules. There are now seven states, I believe, that have passed Affiliate-Nexus sales tax legislation.
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  #3  
Old September 20th, 2011, 09:56 PM
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I would like to see the state of California come after a business in Massachusetts!
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  #4  
Old September 20th, 2011, 10:02 PM
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Quote:
Originally Posted by Chuck Hamrick View Post
I would like to see the state of California come after a business in Massachusetts!
Wouldn't put it past the State Board of Equalization.
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  #5  
Old September 20th, 2011, 10:22 PM
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Quote:
Originally Posted by Chuck Hamrick View Post
I would like to see the state of California come after a business in Massachusetts!
The sales tax folks in North Carolina will do it. They think nothing of spending $10,000.00 to collect a thousand dollars. This department can make life hell for anyone who is perceived to get in their way.
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Old September 20th, 2011, 10:36 PM
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Have they tried it cross state which to my understanding takes it to federal court. Personally I would love to see businesses fight the state in-state court. Meanwhile this witch hunt costs thousands of jobs and loses states millions of dollars.
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  #7  
Old September 21st, 2011, 12:08 AM
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One newspaper article says that NC is in the process of auditing 400+ companies and another article states that the legislature is starting a repeal process

Quote:
Yet, while others are introducing bills to tax Internet sales, North Carolina – one of the first states to pass an Internet tax – is seriously considering two measures (HB 867 and SB 715) that would repeal the law. North Carolina has witnessed first hand the negative repercussions of the Internet tax. Since its enactment, the law has failed to collect any additional revenue for the state or level the playing field with in-state businesses, instead simply costing North Carolina advertisers their jobs.
Sounds like confusion
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  #8  
Old September 21st, 2011, 12:34 AM
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Witzer, can you post or PM the link for this article - I can really use this info in discussions I've been having with some Ca legislators. Thanks.
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  #9  
Old September 21st, 2011, 09:01 AM
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Quote:
Originally Posted by AffiliateHound View Post
Witzer, can you post or PM the link for this article - I can really use this info in discussions I've been having with some Ca legislators. Thanks.
I sent you a PM but here are the links if anyone else wishes to read them.

http://www.stopetaxes.com/states-pus...carolina-a3027

http://www.news-record.com/content/2...ax_amnesty_bid
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  #10  
Old September 21st, 2011, 04:46 PM
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Thanks for all the information, very helpful for us to structure a backup plan
  #11  
Old September 21st, 2011, 05:21 PM
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If a company makes $500,000 from CA customers but less than $10,000 from CA publishers, then is exempt from collecting sales tax. Does that sound correct?
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