OAKLAND (CBS/KCBS) — An East Bay Assemblywoman is looking to collect taxes she claims are owed to California.

Assemblywoman Nancy Skinner wants to pass legislation to effectively force Amazon to start collecting sales tax in California and then transfer those funds to the state treasury.

“With California’s economy hurting the way it is, it’s not fair to hurt our small businesses that have played by the rules,” said Skinner.

Some have called the way Amazon’s model is set up — a tax evasion scheme.

KCBS’ Margie Shafer Reports:

Out of state retailers must collect state sales tax if they have a presence in the state, so Borders and Barnes & Noble charge sales tax to their online customers in California. Amazon does not.

“I haven’t spoke to our new governor about it, but I would hope that he would see that our California businesses are being put at a real disadvantage right now,” Skinner added.

Skinner’s legislation has the support of the California Retailers Association, Home Depot, Macy’s, JC Penny and independent booksellers.

She estimates if the legislation passes it would bring in at minimum $300 million and hopes to introduce it within the next few weeks.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Comments (9)
  1. sdgfrdg says:

    Bravo! Let’s close this loophole ASAP and get CA the tax revenue it deserves!

    1. jon says:

      CA was too slow to invite Amazon to open up a corporate office in CA, and that is why they don’t collect sales tax from CA buyers. its the evolution of retail, CA needs to get with the times, u dinosaurs that agree and have no internet connection and are.still scared of lunar eclipses need to get with it too.

      1. Idof says:

        I disagree!! We need less taxes and Amazon and out of state retailers give taxpayers a break. Our CA government is not fiscally responsible to begin with and CA citizens are already weighed down with a heavy tax burden.

  2. Ron says:

    How about all the other out of state companies selling to the states people with
    no sales tax. Puts retailers in Californoia at a 9 % disadvantage right off the bat.

  3. JaneQPublic says:

    Amazon online is one of the FEW places we can AFFORD to shop. How about LOWERING the OUTRAGEOUS state sales TAX in California? Maybe we would be MORE likely to shop IN state. As it stands, adding almost 10% to retail sales in-state is a real DIS-incentive to buy locally.

    Making Amazon charge tax for online purchases is a REAL DUMB-ASS IDEA Ms. Skinner!!!

  4. FedUpCalifornian says:

    Liquor Tax
    Luxury Tax
    Excise Taxes
    Property Tax
    Cigarette Tax
    Medicare Tax
    Inventory Tax
    Car Rental Tax
    Real Estate Tax
    Well Permit Tax
    Fuel Permit Tax
    Inheritance Tax
    Road Usage Tax
    State Income Tax
    Food License Tax
    Vehicle Sales Tax


    (in fact, it’s TOO MUCH already!!!!!!!!!!!!!!!!)

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