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Showing posts from July, 2011

California Enacts Explosive “Amazon Law”!

The Golden State becomes the newest state to enact an "Amazon Law"!
That’s right! On June 29th, California’s Governor Brown signed into law, what is quickly becoming the nation’s most explosive “Amazon Law" to date.  By now you've certainly heard about this significant development in the taxation of internet sales as this story has received California sized coverage.
And like an explosion that’s heard loud and clear, California’s “Amazon Law” has generated one huge reaction after another.
The rumblings started even before the law was finalized.  Amazon had warned that it would sever its affiliate contracts if Governor Brown signed the "Amazon" legislation. The mega on-line retailer didn't hesitate to carry out its threat in other states that have enacted "Amazon Laws", such as Connecticut and Illinois. But with California being the largest state thus far to enact an "Amazon Law," and the state with the largest number of “affiliates

Are State "Amazon Laws" the "New Normal"?

The “New Normal”, a phrase coined in 2008 to describe the then-new period of diminished investment returns and slower economic growth that seemed permanent after the financial crisis and recession of the last decade.  Many have borrowed this term to describe what wasn’t expected or normal in the past, but now is.

As I closely follow developments in the internet sales tax area, I’ve often found myself thinking of this phrase and wondering whether “Amazon Laws” are the “new normal”; the expected approach to be taken by states that seek to tax internet sales.
Amazon Laws and Presumptive Nexus, One in the Same
Before launching into a discussion on the status of  these “Amazon Laws”, let’s explore how these laws came about and why they’re referred to as such.
These laws, which seek to ensure that internet sales are taxed, have been nicknamed "Amazon Laws" primarily after their most visible target, but also because Amazon.com (and Overstock.com) sued the State of New York after it …