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There are proposed California bills that could require the collection of sales tax for online purchases similar to bills proposed in other states and that could resemble the law that recently passed in New York State. At this time, a hearing date for AB 178 has been set for April 13, 2009.

Many political and business analysts believes that the proposed legislation may be a done deal especially with the current California budget crisis. One of the top affiliate network - Commission Junction which is headquartered in California - is at the forefront of efforts to battle this proposed legislation head on.  Majority of the online based companies based in the state are opposed as well to the recently proposed legislation and are working with a lobbyist and other groups in hopes that they can influence the rejection of the bills' passage. The affiliate industry and many of its clients may be impacted by these bills.

The application of the bills is dependent on particular business and factual circumstances. Yet it is feared that it could be sending wrong signals across different direction. The best thing to do is to stay on top of things by keeping educated on development surrounding this proposed legislation. It is strongly advised that those who are against legislation make a strong case by giving concrete support to the groups opposing it.

The following are two sources of information on the proposed California bills that you may find helpful:

http://democrats.assembly.ca.gov/members/a14/News_Room/Press/
20090202AD14PR01.aspx

http://www.leginfo.ca.gov/bilinfo.html

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