New law, New Budget in California. No Tire Rack Link

[Randy Chase]

Tire Rack (and Amazon) just sent me letters saying that my affiliate status is terminated due to the new rules that are now in effect.

Previously, tire rack did not have a business presence in California so they did not charge Calif sales tax. The new rules states that an affiliate in that state, creates a business presence. So the solution is, not affiliates in California.

The crap of it is... this does not raise more money for the state, it loses money as the flow of income through affiliate links is now halted.

[Craig Naylor]

Randy... you were apparently typing away as I was creating my thread on the same subject. I've deleted mine.

Here's what the letter said.

Effective upon the effective date of California Law ABX1_28 (the "Amazon Law"), California has changed its definition of "retailer engaged in business in this state" to include any retailer who enters into an agreement with a California resident that refers potential purchasers of tangible personal property, whether by Internet-based link on an Internet website or otherwise, to that retailer.

Because of this change in California law, we regret to inform you that Tire Rack will no longer be able to allow you to be a "Publisher" in the Tire Rack Affiliate Marketing Program. Please remove from your website all links to Tire Rack.

We truly appreciate your past support of the Tire Rack Affiliate Marketing Program. Thank you for your understanding.

Not sure if we have today or not to push through orders. Bill was passed today as an addendum to the Budget. Budget is effective tomorrow. Don't know when the bill is effective (today, tomorrow).

Craig

[Bob Pl]

The California legislators are dumber than dirt. They believe they will take the web based retailers by the heels & shake them and money will fall from their pockets into Sacramento coffers. Folly.

[John Stimson]

You're required to pay sales tax on Tire Rack orders anyway. You're supposed to declare out of state orders on your income tax form and pay the sales tax then. Maybe I'm too honest, but I paid mine.

[Arthur Grant]

There is a reason companies like mine, have moved thier corporate headquarters out of California, and no longer consider CA a top place to place jobs. If you spent time with either our federal or state representatives you would realize its worse than you imagined. Two people are leaving California quickly (1.5M over the last decade) Employers with jobs that don't have to be in California, and retirees.