The battle over online sales tax collection in California continues to heat up. Bloomberg News reports that Amazon.com has added another $2.25 million to a campaign to overturn a law which would require online retailers to collect sales tax on purchases made by residents in the state.
Bloomberg notes that Amazon is the only backer of the More Jobs Not Taxes campaign, which started with a $3 million donation in June. The goal is to try to get enough signatures — a total of 505,000 by September — to put the anti-tax effort on the ballot next year.
Amazon claims that it does not have to pay sales tax in the state because it doesn’t have physical operations there, citing a 1992 U.S. Supreme Court decision that provided more flexibility to online retailers.
But a number of organizations, including small retailers and a group known as Stand With Main Street, have argued that Amazon should have to collect taxes like all other retailers.
In one of many editorials against Amazon’s stance, The Daily Californian noted this week:
Amazon’s refusal to collect sales tax not only denies the state much-needed revenue but also creates an artificial advantage for Amazon over its competitors (both online and in-person) who do collect sales tax. Such an advantage removes money from local economies and further stifles the slow recovery in California.
Previously on GeekWire: Californians launch boycott of Amazon.com over sales tax