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Amazon cuts deal on CA sales tax

Quote:

California residents have another year without internet sales taxes thanks to a new deal Amazon struck with the state. It will be interesting to see what happens from here though.

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.

http://www.latimes.com/business/la-f...,5065691.story

How come I still can't sign up for an affiliate account?! :mad:

This is interesting news.

This who online tax thing is crazy.

If states are going to charge tax, do it the easy way and only charge it in states where the company has a real presence (office, warehouse, etc.).

An affiliate is not a real presence. That would create a nightmare submitting tax receipts to hundreds of jurisdictions (some places have local taxes).

Everyone needs to start collecting sales tax on online transactions. With the popularity of online shopping there's too much money being left on the table now. New laws are going to have to be passed to require collection of sales tax on all transactions. Nobody is going to like it but it needs to be done.