Monday September 17, marked the beginning of the end of Internet retailer Amazon’s tax advantage over local Pasadena merchants who actually do business in this and other California communities.
California has led the fight to force Amazon to collect sales tax on purchases made in the state. But Amazon has resisted on grounds that a federal court ruling from 1987 allows retailers to not collect taxes unless it has a physical location within the states borders.
The California Legislature and Amazon reached a deal in 2011 that in exchange for a number of jobs and warehouse locations to be built by Amazon in the state, California would provide lucrative tax incentives to company. The deal included a one-year grace period set that ended this past weekend.
The LA Times estimates that online sales from Amazon will add nearly $160 million into state coffers on an annual basis.
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