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Home » Amazon, Legislators Reach Deal Not to Collect E-Tail Taxes for at Least a Year

Amazon, Legislators Reach Deal Not to Collect E-Tail Taxes for at Least a Year

September 12, 2011
Storefront Backtalk

Amazon cut a deal with California politicians Sept. 7 to block the state's online sales-tax law for at least a year. The political deal buys Amazon and other online retailers a year's respite from the online tax in California. But it also effectively guarantees that, one way or another, all e-tailers will be collecting state sales tax 16 months from now.

Under the deal, Amazon and a coalition of brick-and-mortar retailers have until July 31, 2012, to lobby Congress to pass a bill authorizing states to collect online taxes. If the federal law passes, California won't require e-tailers to start collecting sales tax from customers in the state until January 2013. If Congress doesn't act, online tax collection will be required starting in September 2012.

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KEYWORDS consumer packaged goods Global Supply Chain Management North America Regulation & Compliance Retail
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