Jerry Brown down on Amazon proposal
September 2, 2011
Gov. Jerry Brown said Thursday that he is leaning against Internet retailer Amazon.com’s proposal to put off enforcing a new law that taxes online purchases in exchange for the company launching several California distribution centers that would create several thousand new jobs. [SacramentoBee]
“I’m concerned about anything that will reduce revenue going forward because we have a very uncertain economy,” the governor said. “Look, we need more revenues unless we’re going to keep curbing schools, courts, corrections.”
The new online tax is slated to bring in about $200 million a year to the state budget.
In exchange for a two to – reprieve in paying the online tax, Amazon has offered to open six new distribution centers in California that would create an estimated 7,000 jobs.
Amazon has not yet complied with the new law that requires online retailers to immediately collect sales taxes from California customers.
From downtown San Luis Obispo to the parking lot of the new Target store on los osos valley road, paid signature gathers have been asking shoppers to sign Amazon’s petition.
Amazon has spent more than $5 million on an initiative drive to overturn the new law. In response, state lawmakers are promoting another bill that would make the tax measure impervious to a ballot-box challenge, the Sacramento Bee said.