A bill passed by the California State Assembly on Monday aims to help California collect more than $1 billion in taxes from online retailers such as Amazon.com.
Assemblyman Charles Calderon, a Whittier Democrat, claims that the new legislation doesn’t impose a new sales tax, but extends one that California should already have been enforcing. The bill, AB155, passed by a vote of 47-16, with the support of one GOP lawmaker. Now it has to pass in the Senate to become law in the state. The question for Californians that work for retailers like Amazon.com is how this might affect their future. If the tax burden is too much, maybe Amazon will simply go to another state where the tax situation is more tenable.
Most Republican lawmakers rejected the bill because they said it would drive businesses out of California, get the state entangled in Internet regulation, and force the state to defend the law in the courts.
The measure extends the sales tax to online companies that have a presence in the state, including those that have sister companies with offices in the state. California is not the first state to impose state-level sales taxes on businesses as politicians look for ways to pay for over bloated and out-of-control budgets.
Source: NBC Los Angeles