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March 25th, 2009, 09:31 AM #1Important News on SB 806
SB 806 was passed by the Joint Finance Committee with a vote of 53 to zero (3 absent did not vote). It will now go through Fiscal Analysis and then to both Houses for vote, then on to the Governor. I am sure this process will be swift, the target date for taking effect was April 1.
The most alarming part aside from the overwhelming support was that the sales threshold to create a nexus was lowered to $2,000. The support from the Finance Committee from both houses, both parties does not bode well for those hoping or expecting the bill will be defeated.
I know the emphasis is on California but these earlier states are more critical. Each other state that passes increases the likelihood of passing in other states.
I hope Ct affiliates are ready. It would be a good idea to contact some key merchants, including Amazon. Amazon has indicated that they will remove Hawaii affiliates if the law passed there. It would be interesting to see the stance on Ct.
The bill now reads -
and (L) every person making sales of tangible personal property or services through an independent contractor or other representative, if the retailer enters into an agreement with a resident of this state, under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet web site or otherwise, to the retailer, provided the cumulative gross receipts from sales by the retailer to customers in the state who are referred to the retailer by all residents with this type of an agreement with the retailer, is in excess of two thousand dollars during the preceding four quarterly periods ending on the last day of March, June, September and December. Such retailer shall be presumed to be soliciting business through such independent contractor or other representative, which presumption may be rebutted by proof that the resident with whom the retailer has an agreement did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of the United States Constitution during such four quarterly periods.
April 2nd, 2009, 08:09 AM #2
Hmmm is the bill stalled or something?
I checked the link:
doesnt look like anything is happening ...
Apr 1 - long gone ... maybe this bill was a April Fools joke :POpA! Giasou Ti kanies!
April 2nd, 2009, 08:26 AM #3
Maybe they don't update the website every day... you know what they say... big and slow like a dinosaur, quick as a whip to tax just made that one up, off for more coffee
April 2nd, 2009, 09:27 AM #4
The link works for me.
Bill History (in reverse chronological order)
Date Action Taken
3/24/2009 (LCO) Filed with Legislative Commissioners' Office
3/24/2009 (FIN) Joint Favorable Substitute
2/5/2009 Public Hearing 02/09
2/3/2009 Referred to Joint Committee on Finance, Revenue and BondingContinued Success,
The secret of success is constancy of purpose ~ Disraeli
April 2nd, 2009, 03:18 PM #5
LCO takes time to review legality of law and other aspects before sending it to houses for votes. Once sent to houses for vote there is usually a mandated waiting period of 2 or 3 days before vote is taken to give members time to examine bill, research and consider all sides.
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