Online sales tax kicks in for Californians Saturday

12:33 PM, Sep 13, 2012   |    comments
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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.


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