California "Amazon Sales Tax" referendum efforts come to halt

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September 9, 2011

By Bailey Ludlam

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SACRAMENTO, California: The fight to overturn a law requiring internet retailed to collect sales taxes may have come to an end according to a tentative deal struck with California legislators on Wednesday, September 8.

Also known as the "California "Amazon Sales Tax" Veto Referendum" has spent a total of $5.25 million in efforts to qualify the measure for the 2012 statewide ballot. However, less than a month until the petition drive deadline, reports indicated that Amazon reached out to California officials in an attempt to make a deal and does not plan to file petition signatures.[1]

Assemblyman Charles Calderon notes that the tentative deal would delay the collecting of taxes on online sales until September 2012. Initially, the 2011 California law required online retailers that had offices or employees in California to start collecting taxes in July.[2]

Gov. Jerry Brown has not yet announced his opinion on the matter.[1]

According to reports, the state projected that the tax would generate $200 million in revenue for the current 2011-2012 fiscal year.[1]

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