Looking for ways to drum up extra revenue in the state of California, legislators are seeking to impose a new state sales tax on Amazon.com Internet sales. However the Internet giant says not so fast and if proposed laws are passed they will sever all ties with affiliate businesses in California.
Currently the Golden State has more than 10,000 Internet businesses that earn a living with Amazon.com.
“In no uncertain terms, Amazon has made it clear to me that the checks they send Californians will be cut off overnight if pending (sales tax) legislation aimed at regulating their operations becomes law,” said George Runner, former state senator and current State Board of Equalization member.
Runner posted a letter he received from Paul Misener, Amazon’s Vice President for Global Public Policy, in which Amazon leaders cite four pending tax bills—AB 153 (Skinner), AB 155 (Calderon), SB 234 (Hancock), SB 655 (Steinberg) as anti-business laws.
All these measures would require out-of-state online retailers, like Amazon, to collect sales tax on purchases made by Californians.
The assault on taxpayers would cost California much-needed revenue as well as thousands of jobs.
“If any of these new tax collection schemes were adopted, Amazon would be compelled to end its advertising relationships with well over 10,000 California-based participants in the Amazon ‘Associates Program,’” Misener explained.
Don’t think Amazon will actually cut ties with California?