Readersforum's Blog

September 14, 2011

Amazon In Deal To Collect California Sales Tax In One Year

    By Janet Novack has reportedly struck a deal with key California legislators and bricks and mortar retailers to begin collecting sales tax from California purchasers in September 2012, unless Congress passes a national law governing Internet sales tax collection by next July.

The tentative deal would buy Amazon one more year to solidify its position as the Internet’s dominant retailer and  head off an expensive voter referendum to repeal a new California law that requires on-line sellers to collect California sales tax  as of July 1, 2011, if they have marketing  affiliates or related subsidiaries in California. While Amazon has ditched its California marketing affiliates, it still has three units operating in the state, including the lab that developed the Kindel.

The pact was reached after Democrats fell short in their efforts to pass a bill that would have headed off the referendum. Amazon has already invested  $5.25 million in the referendum and a July opinion poll showed it had a good chance of passing. more


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