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  1. #1
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    California nexus law threshold
    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. #2
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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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.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  3. #3
    OPM and Moderator Chuck Hamrick's Avatar
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    I would like to see the state of California come after a business in Massachusetts!

  4. #4
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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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.
    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]

  5. #5
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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.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
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  6. #6
    OPM and Moderator Chuck Hamrick's Avatar
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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.

  7. #7
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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

    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
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
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  8. #8
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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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.
    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;
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  9. #9
    Tax Paying Member
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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
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
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  10. #10
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    Thanks for all the information, very helpful for us to structure a backup plan

  11. #11
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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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