July 03 Updates on Internet Tax

The major developments come from Hawaii and Rhode Island. The Governor of Rhode Island  signed the budget bill and therefore, Rhode Island Internet tax has arrived.  In Hawaii, Governor Lingle vetoed HB1405 which is Hawaii’s version of the Internet Tax; Hawaii is not yet safe. We are now watching to see if legislators override the veto in Hawaii. In California, the Governor vetoed the Internet tax. We are now watching two resurrected Internet tax bills; California is not yet safe.

Affiliates in North Carolina and Rhode Island have been dropped by several merchants. In California, affiliates were removed in anticipation of the law and then reinstated by some merchants upon word of the Governor’s veto.

To make it simple to follow, here are the latest updates on pending Internet tax legislation. Details on the legislation and on the merchant terminations of affiliates can be found at NYAffiliateVoice.

California – Another bill pending (ABX3 19 and SBX3 17)  – high alert

Connecticut – back to committee for further study; ongoing budget talks

Hawaii – Vetoed by Governor, watching to see if legislators override

Maryland – did not pass committee; will be active again next session – high alert for next year

Minnesota – was part of Senate/House budget which was broad vetoed by Governor; high alert for next year

New York – New York Internet tax in effect since 2008 (June 2008)

North Carolina – North Carolina Internet tax legislation part of pending budget

Rhode Island – Rhode Island Internet tax in effect

Tennessee – HB1947 and SB1741 in committee

Tagged as: Advertising Tax, Amazon tax, Hawaii Intenet tax, Internet Sales Tax, Internet Tax, New York Internet Tax, Rhode Island Internet tax