Amazon persuades California lawmakers to delay tax collection
By Kevin Yamamura and Dan Smith, Sacramento Bee
In a deal with state lawmakers and brick-and-mortar stores, Amazon tentatively agreed Wednesday to stop fighting a requirement that Internet retailers collect sales tax on California purchases.
Under the handshake deal, Amazon won a delay until at least September 2012 but will eventually collect state sales taxes.
The arrangement could lay the groundwork for a national online sales tax law. Amazon and major brick-and-mortar retailers like Wal-Mart and Barnes & Noble agreed to lobby Washington over the next 11 months for an Internet sales tax law that applies across 50 states.
“Basically, Amazon will get a safe harbor to lobby Congress and the retailers will go hand in hand with them to adopt a law that will apply to all of the states,” said Assemblyman Charles Calderon, D-Whittier.
If no federal deal emerges by July 31, 2012, Amazon would have to begin collecting California sales taxes starting on Sept. 15, 2012.