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California looking to tax all online purchases

March 20, 2009 by Efficient Entrepreneur  
Filed under Busi Blunders
This article is about 300 words long, and will take about 2 to 3 minutes to read.

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Following an unsuccessful lawsuit by Amazon against New York State requiring Sales Tax to be charged to all online purchases headed for NY State, California has decided to jump on the Online Sales Tax bandwagon according to the California State Government website.

In an effort to “level the playing field for California’s brick and mortar businesses” and help raise money for a state struggling with a budget crisis, Assemblymember Nancy Skinner has introduced Assembly Bill 178. But this isn’t just going to hurt the major players in the internet industry but every small internet business wishing to sell to the state with the 5th largest economy in the world.

California’s budget crisis is NOT because California residents haven’t been paying enough taxes, but because California’s politicians have been mismanaging funds and giving away every dollar frivolously to every lobby and group loud enough to get attention. But this is a national issue more than a state issue when every online retailer will now have to charge sales tax on all orders heading to California.

If you’re not a California resident contact the Performance Marketing Alliance which is leading a movement to lobby against this bill. If you are, contact your local representative. Find your local representative.

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