Tax & Accounting Blog

California – affiliate nexus law put on hold for a year- legislators make deal with Amazon

Indirect Tax, ONESOURCE, Sales and Use Tax, Sales Tax Nexus September 26, 2011

California Governor Jerry Brown signed AB 155 (AB 155) on Friday, September 23rd.  The deal made between Amazon and California legislators is that they will work together to get a uniform federal standard for taxing internet sales passed in Congress and Amazon will drop the ballot initiative to get the affiliate nexus tax put before the voters to repeal it.

AB 155 temporarily repeals the nexus expanding provisions of ABX1 28 passed in June.  AB 155 provides that if there is no federal law by July 31, 2012, then online retailers must begin submitting taxes on in-state sales transactions by September 15, 2012.

AB 155 also increases the “$500,000 in California sales in the prior 12 month” threshold found in ABX1 28 to $1,000.000.