The deal that has been proposed and is on the California Governor's Desk is Amazon will delay collecting sales tax for one year, while work is done on a nationwide sale tax.  And in exchange, Amazon will drop a ballot initiative to overturn the sales tax ban.

I am surprised at the deal, because I don't see much of a chance of the US congress doing anything on taxes until after the next Presidential election.  Of course Amazon may figure out forcing every internet business to collect sales tax could be a competitive advantage (sales taxes are a mess with thousands of jurisdictions, and few Internet retailers would be able to collect them under the current system correctly).  My previous post on this mess Amazon CA Affiliate Sale Tax.

Labels: amazon