Add Hawaii to states seeking sales tax


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Herb ԿԬ
March 10th, 2009, 06:13 PM
as well as Massachusetts, Connecticut, etc . . .

article on InternetRetailer.com:
http://www.internetretailer.com/dailyNews.asp?id=29668

Bill
March 10th, 2009, 06:59 PM
as well as Massachusetts, Connecticut, etc . . .

article on InternetRetailer.com:
http://www.internetretailer.com/dailyNews.asp?id=29668Five down and 40 more to go - unfortunately. :(

affninja
March 10th, 2009, 07:20 PM
Here's my thinking on the subject, and it very well could be misguided. States collecting sales tax on online sales is inevitable. With more and more ecommerce happening each year, and their brick-and-mortar sales tax revenue declining, governments need to make up the difference somewhere. Why not go after the online sales? It's only a matter of time.

And since it's only a matter of time, better to happen sooner rather than later. That way, every merchant will have to come up with a viable gameplan for the changes that doesn't involve terminating every affiliate everywhere. No?

If enough states pass the law, and merchants respond by axing their affiliates, that's not good for their business either. Making the (false) assumption that affiliate revenue is generated equally among all states, merchants may be willing to sacrifice 1/50th or 2/50ths of their affiliate-driven revenue. But 5/50ths - 10%? 20/50ths? tThere's a tipping point of sorts in terms of states with internet sales tax that must be reached that will force the merchants to address the issue in more responsible and mutually beneficial terms for their affiliates.

mellie
March 10th, 2009, 07:34 PM
Minnesota, Connecticut, California, Illinois, Tennessee, Hawaii just a few of them. Every affiliate needs to examine pending and proposed legislation. Some of these have already passed the Assembly & Senate and are just awaiting the Governor's signature.

ETRdahir
March 10th, 2009, 08:30 PM
I agree that merchants won't cut affiliates even if the taxed amount reached such a high threshold. Merchants would have to improve their product line and only promote products that convert at the highest and bring in the highest profit.

Great Post.. :coolsmile

La_Valette
March 22nd, 2009, 09:51 AM
as well as Massachusetts, Connecticut, etc . . .

article on InternetRetailer.com:
http://www.internetretailer.com/dailyNews.asp?id=29668

Texas is mentioned in that article at one point. Does anyone know what the situation in Texas is regarding this stuff?

Rhia7
March 22nd, 2009, 09:59 AM
And since it's only a matter of time, better to happen sooner rather than later. That way, every merchant will have to come up with a viable gameplan for the changes that doesn't involve terminating every affiliate everywhere. No?


I agree with you on that point.
I don't like the idea of an affiliate being marginalized based upon the resident state of the affiliate.

mellie
March 22nd, 2009, 10:35 AM
Important update here regarding the hearing and also the staus of Hawaii affiliates and Amazon
http://forum.abestweb.com/showthread.php?t=117537

mellie
March 22nd, 2009, 11:36 AM
Texas is mentioned in that article at one point. Does anyone know what the situation in Texas is regarding this stuff?


I haven't been able to find any active legislation to redefine nexus. I do know Texas is considering the Streamlined Sales Tax Project (SSTP) but that is a long term goal at best. That was what the article was referring to.

I will check my notes and go take another look at their current definition of nexus and let you know more about the current status.

Some states like Virginia, already have a law worded to include affiliates as creating a nexus. The law is simply not being currently enforced.

ladidah
March 22nd, 2009, 12:29 PM
I knew that Massachusetts would be one of the other ones following suite right after. They don't nickname Massachusetts, "Taxachusetts" for no reason :(


Hawaii and Massachusetts have also introduced legislation that would require all online and catalog retailers to collect sales tax on Internet orders received from their state residents, regardless of whether the retailers maintain a physical presence in those states, Schibley notes.

Rhia7
March 22nd, 2009, 12:30 PM
They don't nickname Massachusetts, "Taxachusetts" for no reason :(

Isn't that ironic that Massachusetts was the home of the Boston Tea Party? No taxation without representation etc... :)

ladidah
March 22nd, 2009, 12:47 PM
I know... time for a tea party!

La_Valette
March 22nd, 2009, 04:59 PM
I haven't been able to find any active legislation to redefine nexus. I do know Texas is considering the Streamlined Sales Tax Project (SSTP) but that is a long term goal at best. That was what the article was referring to.

I will check my notes and go take another look at their current definition of nexus and let you know more about the current status.

Thanks!

        
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