Amazon.com wants the so-called Amazon Tax Law repealed. It doesn’t want to collect sales tax from California residents because it doesn’t have a physical store in the state. The California Retailers Association, which includes Wal-Mart, the Gap and Target, has put together a war chest that the group will use to counter Amazon’s efforts.
The group said that without the tax fairness, more stores could close for good. According to them, consumers would go to retail stores and look at the merchandise and go home to buy them online because they don’t have to pay taxes.
If Amazon manages to get more than 504,000 voter signatures by September 27, then the new sales tax law will be placed on hold until California voters can vote on it next year. The online retailer’s strategy is to show the new tax law as a job killer.
Other online retailers are siding with Amazon and hopes that the voters see how the Amazon tax law will affect the economy. There are around 25,000 Amazon affiliates from California who were removed so that the company could avoid collecting sales tax.
The brick-and-mortar stores want the voters to realize that the Amazon tax law is not a new tax. It is just something to cover the sales tax that was not collected from online purchases.
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