Amazon.com just announced that it won’t collect the 7.25% base sales tax on purchases made by California customers, and plans to put a referendum on the CA ballot to strike down the state’s Internet sales tax law that went into effect 11 days ago.
From the Washington Times:
Amazon.com Inc. wants California voters to decide whether to overturn a new law that forces online retailers to collect sales taxes there, setting the stage for a potentially high-dollar ballot fight next year that would pit business against business.A petition for a referendum was filed Friday with the state Attorney General’s Office so that voters can decide on the requirement, which was included in a state budget signed into law in late June.
This from Amazon VP Paul Misner:
Comment on California Jobs Referendum from Paul Misener, vice president, Amazon Global Public Policy
This is a referendum on jobs and investment in California. We support this referendum against the recent sales tax legislation because, with unemployment at well over 11 percent, Californians deserve a voice and a choice about jobs, investment and the state’s economic future.
At a time when businesses are leaving California, it is important to enact policies that attract and encourage business, not drive it away. Amazon looks forward to working again with tens of thousands of small business affiliates in California that were harmed by the new law’s effect on hundreds of out-of-state retailers.
As Governor Brown has made clear, it is important to directly involve the citizens of California in key issues and we believe that Californians will want to vote to protect small business and keep jobs in the state.