Amazon.com has made a tentative agreement with California lawmakers to resolve a battle over sales taxes on online purchases in the state, according to multiple reports this morning.

Under the agreement, Amazon will drop its push to repeal an online sales tax in the state, and agree to begin collecting sales taxes from sales to residents in the state a year from now, according to reports by Bloomberg News and the San Jose Mercury News.

Amazon.com isn’t commenting on the reports. The company is facing similar battles over sales tax across the country — a debate that highlights the divide between the worlds of traditional and online retail. Retailers with physical stores say the company enjoys an unfair advantage when it isn’t required to collect sales taxes.

In an editorial this week, the New York Times scolded Amazon for its position in California, saying it amounted to “an abdication of corporate responsibility.”

Earlier this year, Amazon CEO Jeff Bezos reiterated that the company believes a unified federal law is the best solution to the tax issue. The Mercury News reports that any federal legislation would supersede the deal Amazon has reached with California lawmakers.

 

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Comments

  • http://twitter.com/711withScreech 711 with Screech

    Just hide the tax somewhere else, in shipping or something. 

    • Joe Celko

      No, it is not that easy. There is the California state tax that has to be sent to them, then there are county sales taxes that have to be split out, then there are city sales taxes. about 1400 of them in California.

      Oh, where did the sale take place? If I order on Amazon from one of their used book dealers in NY and have it shipped to a friend in WY with my credit card in CA from my PC in TX which has an ISP in NV, which States get how much tax from me? From my friend? From the book dealer?

       Obviously, NJ! :)  Well, if they pass a State law over riding the Interstate Commerce clause that says they get a cut because the packing box was made in Perth Amboy and that their claim takes priority.

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