California makes another run at taxing Amazon

Sacramento BeeJanuary 19, 2011 

Assemblywoman Nancy Skinner is making another run at forcing major online retailers, including Amazon, to collect sales tax on California purchases.

Skinner, a Berkeley Democrat, said the bill could generate between $250 million and $500 million for the state. Proponents are hoping that a new governor and some major corporate firepower, including Amazon rival Barnes & Noble, will help the legislation succeed where it failed before.

Former Republican Gov. Arnold Schwarzenegger was adamant in his opposition the past two years, arguing that the bill would cost the jobs of "affiliates" in California who earn income by generating sales for Amazon and other companies. He vetoed previous legislation and blocked online tax proposals during budget talks.

Gov. Jerry Brown, a Democrat, has not yet stated a position on the bill. It is not part of his plan to bridge a $25.4 billion deficit.

Democrats say they can pass the bill with a majority vote because it changes the collection mechanism for a tax Californians are already supposed to pay.

Read the complete story at sacbee.com

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