California lawmakers and business leaders are pushing legislation that’s often known as “the Amazon bill.” It’s actually a series of three measures that would force many out-of-state retailers to collect sales tax from California online customers.
Bill Dombrowski is President and CEO of the California Retailers Association. He said local brick-and-mortar businesses are at a price disadvantage when online retailers don’t collect sales tax.
“This is not a big retailer versus small retailer," said Dombrowski. "This is physical retailers versus online. This is not a new tax. This is a collection issue.”
The bills target out-of-state retailers such as Amazon.com that use in-state affiliates to help market their goods. The Performance Marketing Association, which represents those affiliates, says the bills would devastate its members.
Large out-of-state retailers have also threatened to cut ties with affiliates in California and other states where similar legislation has been proposed.
