Wednesday, June 29, 2011

Amazon Opens New Internet Tax Front In California

Seattle-based Amazon.com has opened yet another front in its battle over Internet taxation, this time with the State of California. Amazon informed its affiliates today that it would be cancelling the program in California, if any law passes which would tax the ecommerce firm due to affiliates in the state. California is in the midst of negotiating a budget law which would help patch holes in the state's budget by taxing Internet sales, particularly those of Amazon.com. Amazon said if California's Governor, Jerry Brown, signs any Internet tax law it will cancel the program as of the effective date of any taxes. The move is similar to a string of notifications, tax battles, wins, and losses by Amazon over the issue nationwide. Amazon most recently scored a victory in Texas, where that state's governor vetoed an Internet tax bill which would have resulted in the loss of not only affiliates but also jobs in that state; Amazon similarly pulled the development of a distribution center in South Carolina in May, over a similar tax battle there.