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.
If you don’t have a physical presence in a State, you should not have to pay sales tax to the State in which your customer is having the purchase shipped.
I see it differently. There is a long and successful history of forgiving taxes as means of nurturing new industries. Online sales are long past the “new industry” stage and it is time to level the playing field between brick-and-mortar and online retailers.
As much as California needs the revenue, a clear national law makes a lot of sense.
California does not need the additional revenue. It will just waste it.
Level the playing field? It would make more sense to lower or eliminate the state’s brick-and-mortar stores sales tax. Like Oregon.