Tax & Accounting Blog

California Governor vetoes budget bill but Amazon tax provisions still breathing

Indirect Tax, Sales Tax Nexus June 29, 2011

California Governor, Jerry Brown, has vetoed the state budget presented to him.  However, ABX 128 , the affiliate nexus tax provisions that passed the legislature on June 16th, were not part of the veto.

The affiliate nexus bill (ABX1 28) expands the  definition of “retailer engaged in business in this state” to include any retailer who enters into an agreement under which a person in California, for a commission or other consideration, directly or indirectly refers potential purchasers of tangible personal property to the retailer, whether by an Internet-based link, a website, or otherwise, provided that the retailer has total cumulative sales of tangible personal property to California purchasers in excess of $500,000 within the preceding 12 months.

This is a trailer bill to the vetoed budget, so it is still unclear whether or not this bill can advance to the governor.