SAN MATEO (KCBS) – The tax advantage that Amazon.com has enjoyed over brick-and-mortar stores in California is about to end and a Bay Area Congresswoman is looking to extend it to all online sales nationwide.
California customers have been stocking up before Amazon is required to start collecting state sales tax on purchases on September 15 – and the time of tax-free shopping online may soon end for everyone.
KCBS’ Susan Kennedy Reports:
Peninsula Congresswoman Jackie Speier has co-authored a bill making its way through the House that would give states the authority to require retailers to collect state sales tax on all online purchases.
“It’s a win for the consumers because they still have great advantages in terms of the convenience of purchasing online,” Speier said. “It’s a win for small businesses because they’re not placed at a disadvantage. It’s a win for states that have lost so much sales tax revenue.”
Speier said California loses $2 billion a year in online sales tax and $23 billion is lost across the country.
She said she believes the bill will help level the playing field for brick-and-mortar stores, many of which have had trouble competing with their online competitors.
A similar bill is making its way through the Senate and could be added to her bill, which she said has bipartisan support.
Amazon already collects sales tax in other states and California is one of many where it will begin collecting over the next two years.
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