Barnes & Noble Inc., the world's largest bookseller, has paid California $9 million to resolve a tax dispute.
In return, the State Board of Equalization canceled two tax determinations against barnesandnoble.com, the company's online sales operation, totaling more than $17 million, plus interest and penalties.
In addition, the board waived all claims for sales and use taxes and interest and penalties through Nov. 1, 2005, the date barnesandnoble.com started collecting and remitting sales and use taxes to the state.
The Board of Equalization administers sales and use taxes, property taxes, special taxes and tax appeals.
Spokeswomen for barnesandnoble.com and the board declined to comment on the agreement, but its terms are included in a quarterly report Barnes & Noble filed last month with the Securities and Exchange Commission.
The online arm of the bookseller sued board members in Sacramento federal court Dec. 21 seeking a judgment that the state's attempt to impose taxes on its sales in California violated the company's constitutional rights. The lawsuit sought an injunction against members of the board.
The parties agreed to the settlement Aug. 19, and the suit was dismissed last week.
Call The Bee's Denny Walsh, (916) 321-1189.
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