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Posted at 11:46 AM ET, 09/08/2011

Amazon, California lawmakers strike a tax deal


Amazon and the California legislatvie leaders have agreed on a deal to let the retailer duck a new tax law until September 2012. (KAREN BLEIER - AFP/GETTY IMAGES)
Amazon.com struck a deal Wednesday night with California legislative leaders to ward off an online sales tax for up to a year. In return, the online retailer must stop leading the charge to overturn a state law that requires online retailers with ties to the state to collect state taxes.

Under the deal, Amazon can delay collecting the taxes until September 2012, unless Congress weighs in on the issue and trumps the state law before then.

According to a report from the Los Angeles Times, there’s been no word from Gov. Jerry Brown (D) on the deal. Last week, Brown rejected Amazon’s offer to open two distribution centers in California in exchange for safe harbor from the law until 2014.

The law, which has also been resisted by other online retailers such as Overstock.com, was originally projected to generate about $200 million for the state.

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By  |  11:46 AM ET, 09/08/2011

Tags:  Politics and policy, Online shopping

 
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