California’s Tax Problem

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Ed. Note : Some argue for the abolition of the taxes all together or a flat tax, but really we can’t expect a tax based on "presences" to be appropriately levied. Will the job situation be fixed in 18 months? If it is, expect unions and "innovation" to take a back seat- the problems that were left for this administration make me hope that we do not enter yet another lost decade.

The result of this bill is that any out-of-state retailer will *not* have to collect sales tax if they sever business relationships with a large swath of contractors, service providers, ad networks and affiliates that have a presence in California.

If you are a company that in any way makes a commission or markets on behalf of another company as your monetization, you are in danger.

If you are a contractor, web host of some kind or other service provider that is even peripherally facilitating the sale of a product in any fashion, you are in danger of out-of-state retailers canceling their contracts. This could include web design, web hosting (including out-of-state hosts with a server in California), coding, mobile apps, you name it.

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Posted: June 14th, 2011
at 11:04am by mnp


Categories: web,business,politricks,development,education,jobs,innovation

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