SACRAMENTO - If you shop online, your bill could be getting bigger this weekend and not because product prices are going up. This Saturday, California's new "Amazon tax" kicks in, requiring Internet-only stores to start charging sales tax.
The San Jose Mercury News says the new law passed last year after a long battle between Amazon and California lawmakers.
Local governments around California will receive hundreds of millions of dollars in much needed sales tax revenue. Meanwhile, brick-and-mortar business are more comfortable knowing Amazon and other online retailers have to charge their customers sales tax, which has given online stores a competitive edge in the past.
The state's tax collectors have ordered 200 online-only businesses that sell more than $1 million in a goods a year in California to comply.