Friday, September 23, 2011

Gov. Brown Signs Amazon Delay Bill

Governor Jerry Brown has signed a bill which will delay the collection of taxes on online purchases for California residents, after reaching a deal with Amazon.com, local retailers, and California lawmakers. The bill -- AB 155 -- delays the collection of tax by Amazon.com until at least September 2012, enough time for either lawmakers in Washington time to craft a national tax bill, or for Amazon to prepare for collecting taxes in the state. The move came after Amazon.com started a ballot referendum to overturn an earlier bill, which immediately demanded that Amazon collect taxes on California residents. That move resulted in the cut of thousands of California affiliates. It's unclear what will happen with those affiliates now that a deal has been reached between Amazon and the state.