After a decade of work trying to resolve the issue of online sales tax collection, both the Assembly and the Senate passed a deal worked out between traditional brick-and-mortar companies and Amazon. The coalition pushing this effort represented hundreds of companies and all the major national and state commercial real estate associations.
In the last state budget, language was adopted that requires Amazon to begin collection sales taxes immediately. That language passed, despite the company’s objections – which immediately began collecting signatures for a referendum to reverse the law. A costly statewide battle over the issue was not something either side truly wanted to pursue, so talks began to try to avert such a fight.
AB 155 (C.Calderon; D-Whittier) reflects those discussions with Amazon.com and the California retail and shopping center industry. Specifically, Amazon has committed that they will begin collecting sales tax in this state on September 15, 2012, while working to resolve the issue at the federal level.
This is a huge leap forward where we, as a state, can finally move forward and operate in a fair marketplace where every company has to play by the same rules. We encourage the Governor to sign AB 155.
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