Opens in a new tab

Amazon begins petition push to end California’s electronic sales tax

August 7, 2011

How do you become the world's biggest online retailer? By paying attention to, and taking action in connection with, every business opportunity and threat.

That's why Amazon has thrown its support behind a federal online sales tax bill and mobilized to fight state sales tax collection on products purchased via the Internet.

The latest e-commerce tax battle is being waged in California.

On July 1 the Golden State started collecting sales taxes on products bought from online sellers who aren't based in the state but which have some state connection, such as workers (usually affiliate contractors), warehouses or offices within the state's boundaries.

The measure is projected to help cash-challenged California raise $317 million a year.

But Amazon and other online sellers say they just can't afford the cost to comply with online sales tax collection. So in addition to canceling affiliate deals, Amazon is leading the fight to take the tax question directly to California voters.

If the anti-tax groups can get 505,000 qualified signatures, Californians will get to decide next year, possibly as soon as February, whether the e-tail tax should stay or go. And that petition goal is this week's By the Numbers figure.


505000 Amazon California tax petition sigs

The petition drive went "in your face" this past week when anti-tax signature gatherers showed up at popular brick-and-mortar destinations in Los Angeles, San Diego and Pasadena.

Many of the targeted businesses, including Target and Trader Joe's, have complained that they have lost sales to tax-free Amazon sales. The tactic of using foot traffic at conventional stores in an effort to preserve a tax break irritated many traditional retailers.

"It's a particularly clever shot across the bows" of the big-box stores, Bill Whalen, a research fellow at the Hoover Institution at Stanford University and a former Republican speechwriter, told the Los Angeles Times. "It says that not only do we intend to fight you in the court of public opinion but actually we're going to come onto your front porch."

If this is the way that the fight over the California electronic sales tax war is starting, look for things to get much nastier before it's finished.

Public vs. buyer opinion: It's no secret that folks hate taxes. And many do shop online specifically to avoid paying sales taxes.

Add to that California's long history of supporting anti-tax referenda, and Amazon has a decent chance at getting the public to repeal the state's new online sales tax. Remember, this is the place that 33 years ago gave us Proposition 13, the granddaddy of tax ballot initiatives.

But media opinion, at least right now, is decidedly against the Seattle-based giant e-tailer. You can check out the criticism of Amazon's no-tax stance at the collection of links gathered by the American Booksellers Association.

Related posts:

Want to tell your friends about this blog post? Check out the buttons — Tweet, Reblog, Like, Digg This and more — at the bottom of this post. Or you can use the Share This icon to spread the word via email and other popular online avenues. Thanks!

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
confused office worker
8 workplace benefits questions to ask this enrollment season

October 26, 2026

Millions of U.S. workers are now deciding what workplace benefits, some of which also offer…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment