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Amazon Works out a sales tax Deal with California

Amaozn has been in a logn-running fight with a number of states over sales tax, and today it looks like the retail giant might have worked out a truce with the Golden State.

Earlier this year the State of California passed a new tax law as part of the state budget. It’s called the “nexus tax”, and it redefines who has to collect sales tax in the state of California to include companies that have business partners in the state. Amazon decided to fight this law by funding an effort to get it repealed. (One quirk of CA state law is that voters can repeal laws passed by the state legislature.) It’s not clear how successful amazon has been, but it looks now like their efforts were moot.

Reports are coming in that Amazon has agreed to back down from its attempts to get the law repealed. In what looks to be a truce, Amazon has agreed to stop fighting in exchange for a 1 year moratorium on the new law. The exact terms of the deal have not been announced, just that the 2 parties have worked out a handshake deal.

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