Commentary: Twelve years ago California made a deal with Amazon to establish how to collect sales taxes for online purchases. But while Amazon has become a retail giant in California, the taxation issue still reverberates. 📝: DanCALmatters
After the hoopla of the deal died down, another significant aspect emerged. State tax officials – the Board of Equalization at the time – initially declared that Amazon would collect taxes on items that it packaged and delivered for independent sellers. But then the board just as quickly reversed itself and in a letter said Amazon did not have to collect those taxes.
Critics see that as a loophole that costs state and local governments untold billions of dollars and gives online sellers an advantage over stores selling the same items. One critic, Fresno camera store owner Stanley Grosz,aimed at forcing Amazon to collect taxes on sales from their independent affiliates.
Rebuffed at that level, Grosz took his case to the state Courts of Appeal, which in January issued a decision. Grosz, however, has not given up. He’s petitioning the state Supreme Court to take up the case.
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