The lengthy dispute between the State of California and Amazon took a dramatic turn on September 10th when state lawmakers and the online retail giant agreed to a compromise bill that will put an end, pending Governor Jerry Brown’s approval, to the drawn-out sales tax controversy—at least for now. Under the new measure, Seattle-based Amazon will begin to collect sales tax from customers in California in September 2012 barring future federal legislation. Given the amount of effort Amazon exerted during its battle with the Golden State, this concession may surprise many.
Currently, California is one of 24 states that permit referendums, which are proposals brought by citizen petition, to repeal a law previously enacted by the legislature. In California, 500,000 signatures are needed to push issues onto a state ballot. Prior to the agreement, Amazon had already spent $5.25 million on its campaign to obtain the necessary number of signatures. The campaign reflected Amazon’s belief that voters, if given an opportunity, would support the repeal of the tax law. However, as part of last Friday’s deal, Amazon will ditch its campaign and drop the referendum effort. [Read more…] about Until We Meet Again: Putting the California-Amazon Battle on Hold, for Now