California Senate Approves Net Tax Bill
Grant Erickson points to this internet.com story, which says "On Thursday, the California state Senate approved a bill that requires businesses with stores in the state to charge their customers sales tax for purchases made over the Internet." The state's huge ($35 billion) budget deficit is named as a driving force for the measure.
I think California figures that it is simply too difficult to move a web site. Once you get all of those internet requests aimed at a particular state, ecommerce aren't going to just dig up and move their address. Think of all the heavy machinery and man power it would take to point a domain from one state to another!!!
It is interesting to see California leading the way to in the sales tax fray...since the net has done a pretty good job of transferring wealth from other states in Ca. Only in the last year have other states begun making good inroads onto the web.
You can't tax something that doesn't exist ;)
We don't have any damn sales tax. If you really want to avoid it move all your company here, all six of us could use a job...