California gives Amazon a year of no taxes

Amazon has cut a deal with California lawmakers, according to various reports, giving it another year to sell products to that state's residents tax free.

Amazon has cut a deal with California lawmakers, according to various reports, giving it another year to sell products to that state's residents tax free.

In exchange, Amazon agreed to halt efforts to overturn the new California law requiring it--and other out-of-state online retailers--to collect sales taxes, according to a Los Angeles Times report. That law, signed in June, requires any retailer who, "through a subsidiary," has any "place of business" in California to collect sales taxes.

Amazon is clearly betting that federal lawmakers will take on the issue before California can start collecting the taxes. There's no guarantee that Congress will act. But if it does, its law would take precedent over the California one.

For more on this story, read Amazon and California lawmakers cut sales tax deal on CNET News.

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