After a decade of work trying to resolve the issue of online sales tax collection, Governor Brown has signed AB 155 (Calderon; D-Whittier), which will pave the way for a nationwide solution by giving internet retailers time to push for passage of a federal bill that mirrors California’s legislation.
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 – who 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 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. CBPA encouraged the Governor to sign AB 155 and joined with representatives of Target, The Home Depot, and Wal-Mart in San Francisco to be part of this historic signing.
“A prolonged, costly ballot battle is a benefit to no one,” Governor Brown said. “This landmark legislation not only levels the playing field between online retailers and California’s brick-and-mortar businesses, it will also create tens of thousands of jobs and inject hundreds of millions of dollars back into critical services, like education and public safety in future years. It’s time for Washington to follow our lead and forge a bipartisan national solution.”
We applaud the Governor for signing this bill.
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