Taking the “Amazon” Tax to the Voters

Connecticut is not the only state to enact an “Amazon” tax on out-of-state online sellers in 2011 – Arkansas, California, and Illinois did as well. Amazon.com, and other online retailers, severed its ties to its affiliates in all four states. But Amazon.com pushed a bit further in California by petitioning for a statewide referendum on the law.

The California state attorney general’s office approved its petition on July 18. If Amazon.com can collect 500,000 signatures by September 27, voters will be able to decide in 2012 whether they want to pay sales taxes for online purchases.

Meanwhile, Senator Dick Durbin and Representative John Conyers Jr. introduced legislation (H.R. 2701 and S.R.1452) called, “The Main Street Fairness Act,” to establish a nationwide requirement that online retailers collect sales tax on behalf of consumers in each state.