California gives Amazon a year of no taxes

California gives Amazon a year of no taxes

Summary: 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.

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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.

Topics: Government US, Amazon, Banking, Enterprise Software, Government

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  • because California

    because California does not have monetary issues
    magallanes
    • California doesn't have a monetary issue, they have a spending issue.

      It's a matter of priorities.

      Spend like crazy, and tax like crazy, and regulate like crazy, and make businesses and tax-payers move out.
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  • California just gave Amazon 1-year to move out of state

    They should have taken the Amazon deals where they would have hire 5000 Californian, but instead, they let Amazon delay for one year without anything in return. Now Amazon has enough time to completely move all subsidiary/contractor out of California so they don't have to collect sales taxes. Brilliant move!
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  • RE: California gives Amazon a year of no taxes

    Why anyone chooses to live in a messed-up place like California is beyond me. Earthquakes, wildfires, 3 to 4 times the normal US cost of living, and let's not forget the population of kooks. "The land of fruits and nuts". Oh, I guess the temperature is 70 degrees year round. But at what cost! I'll run the A/C thanks :)
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      Damn... I was born ('48) and raised in South Bay (Torrance/Redondo) and it was a great place - earthquakes aside, they're occurring more frequently elsewhere - but I remember the area before the 70's population growth; it was a very nice place to live. Things change. I don't know where you reside but populations have changed the basic 'niceness' of everywhere I've lived since leaving California. Ah, well... nice memories!
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  • RE: California gives Amazon a year of no taxes

    Amazon needs to do the same practical calculation that the other megacorps do: how much does it cost to bribe half of Congress versus how much does it cost to hire a building full of lawyers? If Amazon increased their "political donations" by ten times, it would still be less expensive than hiring lawyers to fight in all fifty states.
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  • RE: California gives Amazon a year of no taxes

    This goes for the US as a whole. If I call from Arizona to New York and order out of a catalog... If I mail an order form from Florida to the mail order company in Idaho... If I fill in now the same form(s) via an electronic method in Indiana for a email-order company in Kentucky...

    The taxes are due... Regardless, almost all your online transactions are interstate commerce. It does not matter if I use a courier pigeon with a Morse code message to order something from a neighboring state, or from within my own state. Your dog wants steak. Amazon, et al. Get over it and play ball. Or just make a Federal Tax for all sales and apportion it to the state according to GDP or population of the state.
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