The Internet Sales Tax is Back

There are proposed California bills now in the California congress that may enforce the collection of sales tax for online purchases. The bill, similar to bills proposed in other states may borrow language that is resembles the law that recently passed in New York State.

Currently a hearing date for Bill “AB 178″ is scheduled for April 13, 2009. As with all state laws, if passed, these laws may or may not apply to you and your business. But its the writing on wall. The Taxman commith.

Affiliate networks like Commission Junction, which are headquartered in California would be effected greatly by the current California budget crisis and reports being opposed to the recently proposed legislation. They have publicly stated that are working with a lobbyist and other groups in hopes that they can sway the vote build momentum for the rejection of the bills’ passage.

The application of the bills is dependent on particular business and factual circumstances, and affiliate networks Commission Junction and others, are not in a position to provide legal and tax advice regarding the bills, but do encourage online business owners to perform the appropriate due diligence as it relates to their businesses.

The following are two sources of information on the proposed California bills that you may find helpful:

http://democrats.assembly.ca.gov/members/a14/News_Room/Press/20090202AD14PR01.aspx * Not shocking that this is a democrat sponsored bill

http://www.leginfo.ca.gov/bilinfo.html

If you feel that you need more counsel on the bills, be sure you talk to your accountant or independent tax adviser. The bottom line is that if you live in California, you’re hosed. But don’t feel singled out. It’s only a matter of time before other states or the Federal Government jump in. The rescission and downturn in the economy is just the excuse they need to dig their hands deeper into the pockets of business onwers.