In the big budget deal this year was a provision known as the Amazon Tax or the Internet Sales Tax. Officially it’s an expansion of the Use Tax. Whatever you call it, it’s an unconstitutional* cash grab, attempting to force out-of-state Amazon to pay California sales tax.
The tax has already killed businesses in California that depended on revenue from Amazon and other affiliate program hosts, who were forced to shut out California residents in response to the tax. Even though the tax itself is set to take effect January 1, out of state retailers needed to take action to protect themselves in advance. So as a result, state revenues have been reduced, not raised, by this bill. The already lagging state economy has been worsened.
So a referendum will be put on the ballot by the people, to be voted on by the people, to stop this harmful, illegal tax. It could pass, too. Early polling hasn’t been bad. So the Democrats are going to try passing a new bill, starting in the Senate, to change the tax to make it take effect immediately.
The trick is that by passing the tax as urgent, it will nullify the referendum under the state Constitution. And worse, to get support for this, Democrats have effectively bought off eBay to turn on Amazon, by making tweak to the bill to exempt eBay from having to collect tax. Convenient, huh?
So, California, it’s time to take action and defeat this attempt to nullify the referendum.
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