Amazon.com Inc. plans to put a referendum on the California ballot to strike down the state’s Internet sales tax law that went into effect 11 days ago.I was one of the 10,000 who got dumped by Amazon when the law passed. I never made a lot from them, but anything is better than nothing.
“This is a referendum on jobs and investment in California,” said Paul Misener, Amazon’s vice president of global public policy in Washington, D.C. “We support this referendum against the recent sales tax legislation because, with unemployment at well over 11%, Californians deserve a voice and a choice about jobs, investment and the state’s economic future.”
Amazon has insisted that it will not collect the 7.25% base sales tax on purchases made by California customers. Instead, the Seattle retail giant filed the needed documents Friday with the California attorney general’s office to seek a referendum.
Two weeks ago, the company severed all business ties with about 10,000 affiliated websites in California that earn commissions by referring buyers to Amazon. One of the key criteria for imposing the duty to collect sales tax under the new law was the online retailer’s connections to businesses in the state.
It's none of California's business what a person purchases out-of-state via the Internet or any other method. Amazon will win this with the voters and will probably win it in the courts.
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