Amazon Offers Jobs for Repeal of Tax Collection Responsibility

1 Sep

From the LA Times: Amazon wants the state Legislature to repeal a law that took effect on July 1. The statute requires Amazon and other out-of-state Internet sellers to collect California sales taxes.

Instead, Amazon.com is offering to build a number of distribution centers and hire more than 1,000 workers if California lawmakers back away — at least temporarily — from their efforts to force the Internet giant to collect sales taxes on purchases made by customers from the Golden State.

The proposal was made in the form of draft legislation at a meeting Tuesday night between Amazon lobbyists and representatives of companies that belong to the California Retailers Assn.

Backers of California’s effort to collect about $300 million a year in unpaid taxes on Internet sales dismissed the Amazon compromise as a ploy. “It’s a totally cynical maneuver that’s part of their game that they try to play in every state that keeps them from getting the sales tax,” said Lenny Goldberg, a legislative advocate for the California Tax Reform Assn.

A spokesman for Gov. Jerry Brown, who is counting on at least $200 million of revenues from the Internet sales tax to balance his budget, could not be reached for comment.

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