Tax & Accounting Blog

California Passes a 1 Year Reprieve of Affiliate Nexus Tax

Indirect Tax, ONESOURCE, Sales and Use Tax, Sales Tax Nexus September 13, 2011

The California legislature has passed a bill (A155) that would repeal the Amazon nexus law for one year while Amazon lobbies for a Federal solution. The law, which is a deal brokered by California retailers and Amazon, will go into immediate effect upon the signature of Governor Brown.

If Congress enacts a federal law allowing states to require use tax collection for online retailers on or before July 31, 2012, the repealed Amazon law would be re-enacted on January 1, 2013. If Congress does not enact a law, the repealed state law would be re-enacted on September 15, 2012.