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  1. #1
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    CA Budget Includes Amazon Tax
    The CA legislature passed a budget plan this evening that includes the Amazon tax:

    1. The Amazon Tax that had been the subject of a pending Assembly Bill that was scheduled for its own hearing later this month, was one of several "new" tax provisions included in the budget;

    2. The budget includes massive cuts to education, law enforcement, and the court system, to name just a few areas.

    3. Gov Brown had pledged to approve no new taxes without voter approval, but was not able to get the Republican votes needed to put any tax measures on the ballot. For this and several other reasons, there is no way to tell what Brown will do with the budget plan.

    He has 12 days to act on it.

    There was also a viscous name-calling incident that led to a skirmish and almost a fistfight on the Assembly floor. I saw a video of it on the news tonight and here is an accurate recital of the key parts from the LA Times:
    "A skirmish broke out briefly on the Assembly floor after Don Wagner (R-Irvine) likened a portion of the Democrats' budget to a "Tony Soprano" insurance scheme and subsequently offered a half-hearted apology "to any Italian Americans who are not in the Mafia and engaged in insurance scams." Colleagues rushed to separate angry lawmakers from one another."
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  3. #2
    Life is Supposed to be Fun! Rexanne's Avatar
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    *sigh*
    Peace,

    Rexanne

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  4. #3
    ABW Ambassador affninja's Avatar
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    It defies all logic. When people don't respond to rational thought, they're really difficult to convince.

    I'm stressing over this. Big projects in the pipeline and don't really want to move.
    Your Ad Here.

  5. #4
    ABW Ambassador isellstuff's Avatar
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    Quote Originally Posted by affninja View Post
    It defies all logic. When people don't respond to rational thought, they're really difficult to convince.

    I'm stressing over this. Big projects in the pipeline and don't really want to move.
    It would seem potential ramifications for our entire industry are immense, given the extremely large number of top 100 websites that are located in California. I am worried that this will be a catalyst for industry change, which may result in a less favorable situation for my business.

    I just don't understand how a bill like this could pass in a state that is home to Silicon Valley.
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  6. #5
    ABW Ambassador CathyM's Avatar
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    I can't find the article online yet but from the Daily Breeze this morning:

    "... widely seen as a mere placeholder that will allow lawmakers to continue getting their paychecks as negotiations continue.

    If lawmakers had missed the constitutional June 15 deadline for sending a balanced budget to the governor, they would have forfeited $261 a day in salary and $142 in payments for daily expenses under a voter initiative passed last year."

    Later in the article it summarizes the taxes and fees including:

    "Requiring online retailers such as Amazon.com to collect California sales taxes, a change projected to net $200 million annually."

    Argh.

  7. #6
    OPM and Moderator Chuck Hamrick's Avatar
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    The CA legislature passed a budget plan this evening that includes the Amazon tax:
    Do you mean that the Amazon tax law is part of the bill or that they are passing a bill that attributes Amazon taxes as part of the funding?

  8. #7
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    As I read the sketchy info that is available it seems clear that the Amazon tax law is part of the bill.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  9. #8
    ABW Ambassador CathyM's Avatar
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    Here's a Sacramento news item, "Controversial online sales tax in California budget"

    IF you listen to the video, she describes amazon severing ties with companies that they purchase product from. I don't know if she "knows" what she is talking about or not. There was a bill that tied one of the kindle manufacturers to amazon to establish nexus.

  10. #9
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    She clearly does not comprehend the concept of the tax, just like when KNBC's Ana Garcia did her report on it a few weeks ago. I sent her all the info, which she either ignored or misconstrued, and like in this article, thinks that the nexus with out of state merchants is that the California affiliates are selling TO Amazon, Overstock, etc.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  11. #10
    OPM and Moderator Chuck Hamrick's Avatar
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    I know that CA has the biggest ports and distribution centers on the West Coast. Amazon stocks a lot of products and has $M in inventory in CA. Just like in Texas this could cost 1000 or jobs and $B in local income, taxes, fees.

  12. #11
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    Gov. Brown has vetoed the entire budget passed by the state legislature.

    I've stated before that although the "advertising-nexus" language is unconstitutional, and wouldn't actually collect any new revenue, I expect that it will be included in the final budget as one of many "tricks" to make it appear that the budget is balanced. (They'll in $100 or $200 million in revenue from this, knowing that it won't be collected, and making the budget situation even worse in the future.)

    Although today's veto was based in part on the fact that the budget used "tricks" (smoke and mirrors) to make it (falsely) appear balanced, I don't expect this particular "trick" to be removed from the final budget.
    Last edited by markwelch; June 16th, 2011 at 02:06 PM.

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  14. #12
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    We shall see what we shall see: Gov Brown
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

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  16. #13
    Moderator MichaelColey's Avatar
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    Mixed news. Looks like the governor vetoed it, but for other reasons. If they fix those problems and push it through again, he'll probably sign it.

    Time for California affiliates to mobilize again, IMHO.
    Michael Coley
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