Sunday December 17th 2017

Brown Signs New Amazon Tax Legislation

Free News Press – Governor Jerry Brown signed AB 155 Friday which requires out-of-state retailers to collect and pay sales tax on California sales – next year. Under the current law, retailers where required to start paying immediately with their first payment due in October.

In response to California’s “Amazon Tax”, the internet retailer dropped California affiliates and began a ballot measure to repeal the legislation passed earlier this year. The bill Brown signed today is seen as a compromise.

Amazon will drop their ballot initiative and the state will not collect tax until 2012.

“A prolonged, costly ballot battle is a benefit to no one,” Governor Brown said Friday. “This landmark legislation not only levels the playing field between online retailers and California’s brick-and-mortar businesses, it will also create tens of thousands of jobs and inject hundreds of millions of dollars back into critical services like education and public safety in future years. It’s time for Washington to follow our lead and forge a bipartisan national solution.”

The initial Amazon Tax was supported by Wal-Mart, Barnes and Noble, and other retailers with stores in the state. They felt that Amazon had an unfair advantage because the internet retailer was not required to pay California sales tax.

That is changing and Amazon’s California affiliate program is now likely to return.

The legislation delays the sales tax collection requirement until September 2012. This will give online retailers an opportunity to lobby Congress for a law creating a national standard for sales tax.

By: Allen Wilson

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