In 2008 the State of New York enacted legislation which expanded the definition of sales tax vendors. There are currently several state legislatures, most notably California, considering similar proposals. Online sales tax issues are a dynamic and important issue for our industry. It is important that we not only stay abreast of these issues but work together in the best interests of our industry and consumers to educate policy makers on the dynamics of digital marketing.

Google and several other California based companies submitted a formal letter of opposition to the proposed California legislation. The Google Affiliate Network team and other teams at Google are working with trade associations across the country to ensure that policymakers understand the implications of these proposals on businesses and consumers.

Google cannot provide counsel on potential implications. We encourage businesses to follow the situation closely and evaluate any potential impact on your particular business.

Following are some relevant links regarding the situation in California:

California Chamber of Commerce:

http://ct2k2.capitoltrack.com/BillInfo.asp?inarchive=true&org=all&measure=AB%20178&ss=413calchamberbillinfo.xsl

California Taxpayers Association Fact Sheet:

http://www.caltax.org/SalesTaxNexusFactSheet3-2-09.pdf

Performance Marketing Alliance:

http://www.performancemarketingalliance.com/2009/03/19/the-fight-against-california-assembly-bill-178/