California Gov. Jerry Brown has signed into law a compromise bill that will give Amazon.com a reprieve on collecting sales tax on purchases made in the state for another year.
Amazon.com, which had been investing money to bankroll a referendum on the matter, applauded the compromise law.
Paul Misener, Amazon vice president of global public policy, issued this statement:
“We’re grateful to Governor Brown and the legislature’s bipartisan leadership for this win-win law. We’re excited that we now can create 10,000 jobs and cause $500 million in investment in California in addition to reinstating our California-based affiliates. We’re committed to working with Congress, retailers and the states to pass federal legislation as soon as possible and as analysts have noted, we’ll continue to offer customers the best prices, regardless of whether sales tax is charged.”
Meanwhile, The Retail Industry Leaders Association said the legislation will help level the playing field between online-only retailer Amazon.com and brick and mortar stores in California. The group said:
“The days are numbered for those special interests that defend a broken marketplace and government granting special treatment to a select few companies. A level playing field will increase competition and promote growth both online and on Main Street. “
The new legislation ends several weeks of political maneuvering in the state. And, as part of the deal, Amazon has canceled plans to push ahead with the referendum.