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AMAZON deal on California sales taxes – latimes.com

September 8, 2011

“It’s a safe harbor for up to a year,” Assemblyman Charles Calderon, D-Montebello, said of the agreement he helped strike. “If they can’t get Congress to act by next July, then they will start to collect the tax in September 2012.” Above, Calderon with state Sen. Loni Hancock, D-Oakland, left, and Assemblywoman Nancy Skinner, D-Berekely. (Rich Pedroncelli, AP Photo)

Amazon cuts deal on California sales taxes

Legislative leaders agree to let the online retailer delay collecting taxes for a year, while it would drop its battle to overturn the state law. Gov. Jerry Brown has not said if he will support the plan.

By Anthony York and Marc Lifsher, Los Angeles Times

September 8, 2011

Reporting from Sacramento— Amazon.com cut a tentative deal with legislative leaders Wednesday night that would allow it to postpone collecting sales taxes from Californians for another year.

The company in turn would drop its battle to overturn the state’s new law that required it and many other out-of-state online retailers to collect the taxes.

Under the deal, Amazon would delay collecting taxes until September 2012, Assemblyman Charles Calderon (D-Whittier) said. The new law had mandated that Internet retailers start collecting state taxes in July if they had offices, workers or other connections in California.

Amazon had refused to collect the taxes and poured $5 million into collecting signatures for a ballot referendum challenging the law.

If Congress acts by next summer to settle the contentious issue of how online retailers should be taxed, that decision would override Amazon’s deal with California.

via Amazon cuts deal on California sales taxes – latimes.com.

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