Should Amazon Be Required to Collect Sales Tax? [POLL]

 By 
Jennifer Van Grove
 on 
Should Amazon Be Required to Collect Sales Tax? [POLL]
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In June, state tax legislation was signed into effect requiring the site to collect a 7.25% base sales tax on online purchases made by consumers in California. Amazon has thus far avoided its obligation, opting instead to circumvent the law by severing ties with its affiliates in California.

Now, the Internet ecommerce giant is collecting signatures in an effort to take the issue to state voters next June. "Once it submits the signatures for the referendum and they are verified, the law will be suspended until the vote," the New York Times reports.

State lawmakers, meanwhile, are working to pass urgent legislation to thwart Amazon's attempts. Amazon, says the Times, has drafted a counterproposal that offers to build two warehouses and hire 7,000 workers in the state if the sales tax matter is suspended for a few years.

The battle has become a hot button issue in California -- a state in dire need of revenues from sales tax -- and beyond.

"Amazon fears that a defeat in California will sway legislators across the country, and that it will lose a critical pricing advantage. It is fighting a similar measure in New York in the courts," the Times writes.

"Like so many others, I love the convenience of shopping at Amazon, the unparalleled selection, the great customer service, the ease of checkout, the low prices. I don't need the added incentive of no sales tax to make me shop there," O'Reilly Media founder and Silicon Valley thought-leader Tim O'Reilly opined on Google+ Monday morning. "Yes, it would be a minor inconvenience for Amazon to collect sales tax for every county in the nation ... But at this point, the added advantage we're giving to them and other online retailers is completely unnecessary, except to gild their bottom line."

Where do you stand on the issue? Should Amazon be treated as any other brick-and-mortar store and thus be required to collect sales tax from its customers? Vote in the pole below and share your thoughts in the comments.

Should Amazon Collect Sales Tax?

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