For whatever reason, this plain text-plain language news article about sales taxes for online purchases did not get distributed, or went to spam. (if it still comes with strange formatting, or you want the full story, write me) -Richard R., in Oakland CA ----------------------------------------- EXPLANATION - DETAILS OF THE NEW ONLINE SALES TAX FOR CALIFORNIA (from Murdoch-run San Jose Mercury News, Silicon Valley, North California) "New online sales tax" Consumers are required to pay taxes on purchases from online or mail-order retailers located out of state. Few do, though, and thanks to a U.S. Supreme Court ruling, states such as California have few means to force out-of-state retailers to collect those taxes. As part of the new budget deal, California is trying to change that. Who's affected: Consumers who shop online and large out-of-state retailers. What's new: Out-of-state retailers who sell at least $500,000 worth of products into the state are now required to collect sales taxes if at least $10,000 of those sales are referred to them via a Web link by California residents or businesses. Amazon.com, for instance, will now be required to collect sales taxes on purchases made by California residents, thanks to its affiliates in the state that direct visitors from their Web sites to Amazon. What's the impact: The state says the measure will raise $200 million in new revenue. But Amazon, the largest online retailer, as well as Overstock.com, say they will no longer deal with California-based affiliates. The Supreme Court, which has already set limits on when out-of-state retailers are required to collect taxes, could take a dim view of the law. Amazon is challenging a similar New York law in court. Source: Mercury News research THE TAX Who pays: Consumers who shop online and large out-of-state retailers will be affected. How it works: Out-of-state retailers that sell $500,000 worth of products into the state must collect sales taxes if $10,000 of those sales are referred to them via a Web link by a California resident or business. What it means: Amazon and Overstock may stop dealing with California affiliates. --------------------------------------------------------------------------------------------------------------- UPDATE: BOTH A & O HAVE NOW STOPPED THEIR RESELLER AGREEMENTS WITH CALIFORNIA AFFILIATES. -RR.