State Lawmaker Wants You to Pay Sales Tax Online

A State Assemblywoman Plans to Introduce a Bill Which Would Make California Residents Pay Sales Tax When Buying from Online Stores Like Amazon

By Julie Brayton
|  Thursday, Jan 20, 2011  |  Updated 9:23 AM PDT
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State Lawmaker Wants You to Pay Sales Tax Online

AP

A State Lawmaker Wants You to Pay Sales Tax When You Add to Cart

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Consumers are used to escaping paying sales tax when they shop online.

Now one California state lawmakers wants to change that.

Assemblywoman Nancy Skinner plans to introduce a bill which would make California residents pay sales tax when making a purchase from online stores like Amazon. The tax would be the same as if they bought the item from a retail store.

Skinner said the bill could generate between $250 million and $500 million for the state, the Fresno Bee reports.

For the last two years former Republican Governor Arnold Schwarzenegger opposed such a move, reports the Fresno Bee. Schwarzenegger argued because of the bill, some people who earn income by generating sales for Amazon and other companies in California would lose their jobs.

But Skinner contends that online businesses take away jobs from brick-and-mortar retailers in California, according to the Fresno Bee. She says online purchases also deprive the state and local governments of tax revenues.

New Governor Jerry Brown has yet to state a position on the bill, the Fresno Bee reports, but it is not currently part of his plan to bridge a $25.4 billion deficit.

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