State says Internet sales tax totals $263.4 million

Published: Wednesday, Oct. 30, 2013 - 10:13 pm and other Internet retailers collected $263.4 million in sales tax from California customers under a compromise law that took effect a little more than a year ago, state officials said this week.

The Board of Equalization said a total of 45 merchants have begun collecting sales tax since the law, AB 155, took effect Sept. 15, 2012.

The $263.4 million represents tax collected through the end of June, or just slightly more than three quarters of a year.

Board officials wouldn’t break out how much has been collected by each merchant, but it’s been clear since the law passed that Amazon would account for the bulk of the dollars.

The Legislature passed a law taxing Internet commerce in 2011. Amazon launched a petition drive to get the law repealed at the ballot box, but dropped the fight and agreed to a compromise that delayed implementation of the law for a year. At the same time, Amazon informally promised to create 10,000 distribution-center jobs in California, and has begun making good on the pledge: Three warehouses have opened in the past year, and the company announced Tuesday that a fourth will open in the Inland Empire.

Amazon has been building distribution centers around the country in order to reduce delivery times.

Call The Bee’s Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler

Read more articles by Dale Kasler

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