Brown Signs Compromise Internet Tax Bill

SAN FRANCISCO (AP) -- Gov. Jerry Brown has signed a bill that represents a compromise between Amazon.com, traditional retailers and lawmakers searching for ways to raise revenue.

The bill, AB155, delays until at least September 2012 tax rules that were implemented earlier this summer as part of California's state budget package.

That reprieve signed Friday will give online and traditional retailers time to lobby Congress for a national standard on collecting sales tax for online purchases. If that effort fails, Amazon has agreed to start collecting sales tax from California customers.

The budget bill signed previously by Brown forced more online retailers to collect the state sales tax. The move prompted Amazon to cut ties with some 25,000 affiliate businesses in California and collect signatures for a 2012 referendum to repeal the law.

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