California takes another crack at Amazon Tax

Even though it was vetoed last year by Gov. Schwarzenegger, the bill is back – only this time embedded within an emergency “Tax Enforcement” Bill.

In Assembly Bill No. 8 of the 8th extraordinary session, the California legislature has expanded the definition of a “Retailer engaged in business in this state” to include:

Any retailer entering into an agreement or agreements under which a person or persons in this state, for a commission or other consideration, directly or indirectly refers potential purchasers of tangible personal property to the retailer, whether by a link or an Internet Web site or otherwise, provided that the total cumulative sales price from all of the retailer’s sales of tangible personal property to purchasers in this state that are referred pursuant to all of those agreements with a person or persons in this state, within the preceding 12 months, is in excess of ten thousand dollars ($10,000).

They also included a clarification:

An agreement under which a retailer purchases advertisements from a person or persons in this state, to be delivered on television, radio, in print, on the Internet, or by any other medium, is not an agreement described [above], unless the advertisement revenue paid to the person or persons in this state consists of commissions or other consideration that is based upon sales of tangible personal property.

Repeating: The California Senate yesterday (February 18, 2010) passed Assembly Bill No. 8. Stand by for official notice of termination by Amazon, Overstock, and others of all affiliate relationships in the state of California.

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