Amazon May Get Reprieve On California Sales Tax
SAN FRANCISCO (KCBS) –The governor has yet to weigh in on whether he'll sign a compromise deal that allows the state to delay collection of Amazon sales tax until next fall, but leaders have said that it's still a guarantee that California will get much needed revenue eventually.
The deal cut Wednesday night allows Amazon to postpone collecting sales tax until September 2012 giving the Congress time to pass a federal law on how online retailers should be taxed. In exchange, Amazon drops its referendum challenging state law. Senate President Pro Tem Darryl Steinberg had a hand in crafting the deal.
KCBS' Holly Quan Reports:
"A compromise is, too often in this age of politics, a dirty word. But it really isn't. It's the only way that things get done," said Steinberg. "Yes, it's true that the state doesn't get to collect the tax until September, but we avoid the risk of never being able to collect the tax. So I think it's a sound middle ground."
This leaves a $200 million hole in this year's budget, made up of cash the Amazon taxes were supposed to fill.
Berkeley Senator Loni Hancock was a fierce opponent of any prior Amazon deal, but now she has said that it's a good option.
"This is an example of what we've been told the public wants: people getting together to make a decision that is in the best interest of the state," said Hancock.
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