Seems the State of Ca. and Amazon have come up with a compromise on the tax situation and today Gov. Brown signed it into law. The new law pretty much repeals the former law passe earlier this year requiring Amazon to collect sales tax from sales made in California. This was done buy determining that all Ca. affiliates were in sense a physical presence for Amazon and those it met the standard set by the Supreme Court and would require the collection of the sales tax. Amazon disagreed and within hours of signing the cancelled all affiliates in Ca. Naturally upsetting lots of people. Disclaimer here, I was one of those people. (wrote about it here ‘Ca Amazon law and its effects‘)
With this new law signed today, with agreement with Amazon, it puts off the tax collection until Sept 2012. In exchanges Amazon wont put the measure up on the ballot or fight in court and, unless the Congress passes a Federal law that would override the State law, they agree to start the collection in 2012. I believe they are also doing some other things that mean jobs and revenue to the state as well. Apparently from what I read it also means that Amazon has agreed to reinstate all of us Ca. affiliates so we can start making money again. My questions is since they cancelled us with hours of the last bill can I expect my account to be active by morning? Holding my breath….
I personally think this is a good comprimise. I knew eventually online retailers like Amazon would have to collect sales tax, I see the point others make about leveling the playing field (kind of). But the way the state did it was never going to work because of the Supreme court ruling and would have been tied up in the courts for years. Because of Amazons pulling of affiliates the State would never of seen the taxes either and also was losing out on collecting income tax from those affilates. It needs to be solved at the federal level so it applies nationally (cant believe I just said it needs government intervention). This way everyone is happy (somewhat) and taxes will eventually get collected.
Meanwhile I can get back to websites that were Amazon focused and get them back going again 🙂
UPDATE: I sent an email off to Amazon to ask when we can expect our accounts back up and this is their reply
As you may have heard, California Governor Jerry Brown has signed legislation repealing the law that had forced us to terminate our California Associates.
We’re working to relaunch the Amazon.com Associates Program in California as soon as possible. In the next few days, we’ll reach out to all affected past Amazon.com Associates with information on how to re-open their accounts.
We look forward to seeing you again soon.
I think I said it before I find it strange that they were able to pull the plug within ours but it is taking so long to reinstate, I mean some people’s livelihood did depend on their accounts. Think they would be just as anxious to get the accounts back online with hours if for nothing else than PR. ‘How to re-open their accounts’? How about throw the same switch the other way? Ok I may be jumping the gone on that one, I’ll wait to see what hurdles there are before complaining.
UPDATE 2: I did finally get an email from them, after I already figured out what to do. To get your account back you basically have to ‘Re-Enroll’ by just agreeing to the terms again then your account is back live.
Whats your take on this situation? Think its a good compromise?
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