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September 09, 2011
Amazon Cuts Deal With California On Sales Tax Collection
By: Dan Morrill
This means that the end of the tax free shopping on line party is starting to end, as Amazon cuts a deal with the state of California on collecting sales tax on sales to customers in the state. For Amazon retailers they should not see this, as it will be tacked on at the end of the bill and sent by Amazon to California's empty tax coffers. What this means in the bigger picture is that this was an unwinnable battle, but one worth fighting.

Originally the no sales tax was an awesome idea to help a new industry get a good foothold in the market place, backed up by federal laws and a ton of states wanting these companies to come in and provide awesome jobs to people. It worked, we now have a number of 800 pound gorillas in the online marketplace, which serve the needs of millions every day. This is a good thing, and what the internet should be about.

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