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On September 15th, California will reenact a law that says out-of-state retailers will have nexus in CA, and therefore be responsible for collecting sales tax on CA sales, if they work with CA-based online affiliates to advertise their products.
As it is written:
"This bill would include in the definition of a retailer engaged in
business in this state [California] any retailer entering into agreements under
which a person or persons in this state, for a commission or other
consideration, directly or indirectly refer potential purchasers,
whether by an Internet-based link or an Internet Web site..."
Rather than comply with the law, many retailers find themselves better off cutting ties with their CA affiliates, shifting their ad budget elsewhere, and avoiding having to collect the tax.
I am a California affiliate whose business is at risk. I run a comparison shoppin...
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