|T O P I C R E V I E W
||Posted - 03/20/2009 : 02:11:52 AM
Assemblymember Nancy Skinner announces legislation to close tax loophole and bring much needed revenue to California.
Legislation will require out-of-state companies doing business in California to collect sales and use taxes required by law.
SACRAMENTO, CA - Assemblymember Nancy Skinner (D–Berkeley) announced today that she has introduced Assembly Bill 178, legislation that will ensure that California receives its share of sales and use tax revenue from out of state companies leveling the playing field for California’s brick and mortar businesses.
AB 178 would provide that out-of-state companies which maintain a network in California and thus have a presence in the state would therefore be required to collect sales tax on orders received from within California. New York passed a similar law, and was sued by Amazon.com. The New York Supreme Court dismissed Amazon’s claim, based on an extensive body of legal decisions defining the nature of nexus and upheld New York’s right to levy the sales tax.
“This legislation will close the current loophole in California tax law which has allowed out-of-state companies to avoid collecting California sales and use tax,” said Assemblymember Nancy Skinner (D – Berkeley). “During this unprecedented fiscal crisis we cannot afford to lose sales tax revenue from out-of-state companies when our own local businesses are struggling to keep their doors open.”
AB 178 is modeled closely after the New York law and written to conform to the recent New York Supreme Court decision. These taxes are due and payable as use tax, the issue raised in the bill is the point of collection, not the amount of tax owed. The bill exempts businesses doing less than $10,000 in business in the state. AB 178 is expected to raise approximately $55 million in revenue per year.
“This bill helps preserve businesses and jobs in our communities,” said Hut Landon of the Northern California Independent Booksellers Association. “Independent booksellers have been hammered by unfair tax competition from Amazon for over a decade. And as Amazon has expanded its retail reach, more and more locally-owned businesses are faced with unfair competition. We welcome this effort to level the playing field for all retailers.”
AB 178 is joint-authored by Assemblyman Charles Calderon (D – Montebello) who chairs the Assembly Revenue and Taxation committee.
|3 L A T E S T R E P L I E S (Newest First)
||Posted - 03/21/2009 : 07:17:08 AM
For all those that are interested, you can find the email addresses of everyone on the committee at:
California State Assembly
Committee on Revenue and Taxation
Committee Phone (916) 319-2098
Charles M. Calderon - Chair
Phone: (916) 319-2058
Chuck DeVore - Vice Chair
Phone: (916) 319-2070
It should be noted that Skinner's name does not appear.
Write everyone on that list! Let no stone be unturned.
||Posted - 03/21/2009 : 07:03:34 AM
It should be noted that although the "tax bill" is going to collect money from anyone who does business with California, this representative does not want to hear from you at all. Try the contact us button to find out what I mean.
Also, there is no email address provided anywhere within http://www.assembly.ca.gov for any of these representatives. In simple English, they want to extend this tax collection business for everyone doing business with Calfornia, but simply do not want to hear from you at all.
What a shame.
However, we did find the email address for her cohort in this taxation scheme and his name is Charles M. Calderon, Chair of the Committee on Revenue and Taxation. His email address is:
Pass the email along and tell him what you think about this taxation.
||Posted - 03/20/2009 : 03:26:35 AM
If you would like to download the California Final Summary Budget then click on this link. http://www.waynestrnad.info/mywaynestore/scripts/prodView.asp?idproduct=145