Amazon Wins Reprieve on California Tax in Exchange for Jobs
California Gov. Jerry Brown on Friday signed compromise legislation granting Amazon.com Inc. a reprieve from collecting state sales tax after the company offered the promise of thousands of jobs, a development that comes as the online retail giant takes up a broader sales-tax fight on multiple fronts.
The bill pushes back by a year the time when Amazon and other Internet retailers would have to start collecting sales tax in California. It now says they have to start collecting the tax in the state by September 2012, but only if Congress fails to act on a federal online sales-tax measure. In exchange, Amazon has agreed to create at least 10,000 full-time jobs in the state and hire 25,000 seasonal employees by the end of 2015.