Florida State Senator Detert Aims to Cripple Small Business

The Result of Online Sales TaxFlorida State Senator Nancy Detert has announced that she is continuing to research requiring merchants to collect sales tax on online sales, and it appears likely that legislation will be introduced in Florida during the upcoming legislative session, according to Affiliate Advocacy.

Hopefully, as Senator Detert researches the matter, she will realize that this legislation could very well have a negative economic impact on the state.

Just as the scenario played out in New York, companies will remove their affiliates in Florida to avoid establishment of a tax nexus. Those affiliates aren’t faceless entities – they are Floridians who run small businesses across the state.

When these affiliates are fired, they will have less taxable income for the state coffers, and the skyrocketing unemployment rate in Florida (11.2% in September 2009 – Data source: U.S. Bureau of Labor Statistics) will continue to swell.

And still no incremental sales tax will be levied.

Back in April 2009, LinkShare mapped out the locations of affiliates in the state of Florida. The map tells a stark story about the negative impact in Florida of an online sales tax.

Florida affiliates are encouraged to contact their Senators and Representatives to convey the impact of this tax (resources to take action).

Update:

The Performance Marketing Alliance indicates the upcoming legislation will be related to the streamlined sales tax, rather than targeting affiliates.

This post originally appeared on the Affiliate Marketing Blog by Shawn Collins

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