As I mentioned in my last North Carolina update, there are delays all the time when it comes to the state budget. Well the Governor of North Carolina has announced that she was not happy with the budget proposal because it does NOT raise enough revenue and also included a 2% increase income tax. Lawmakers now say they will start all over. The joint committee will meet again starting on Monday.
The Governor apparently wants increased revenue from sources other than income tax, good bet she is for the “click through” advertising tax. This supports earlier comments from the state’s revenue secretary. North Carolina has a back up plan that involves simply interpreting current law to require merchants or companies with marketing affiliates to collect sales tax.
The saga in North Carolina is far from over. It also continues in California. Despite huge slashes in spending and extreme cuts in services in California huge deficits remain. There’s probably a limit to the cuts they are willing to make, public outcry will demand an end to the cuts. All states will continue look to increase revenue, through what ever means it can.
I am not sure what the answer is to all revenue woes or what the answer is for fair sales tax collection. I understand the states needs, the view of brick and mortar stores and of course that of online merchants. Stuck in the middle is the affiliate.