LOS ANGELES (CBS) — Will the governor of California grant online retail giant Amazon a reprieve on a sales tax in exchange for the promise of thousands of jobs?

A new law aimed at closing a tax loophole for items bought online in order to drum up revenue for the cash-starved state could be the only thing separating 7,000 new jobs from coming to California.

George Runner at the Board of Equalization told KNX 1070 that Gov. Jerry Brown is wrong if he believes the so-called “Amazon tax” would generate millions in revenue for the state this year.

“The current law that has passed is not collecting any money,” said Runner. “We have not had one out-of-state retailer who has registered to collect sales tax.”

Amazon wants a two-year moratorium on the tax in exchange for a physical presence in the state, which will then make them legally responsible for them to collect sales tax — a result Runner said is “a win-win deal”.

The retailer is also taking its fight against the tax to court along with filing a ballot petition that would potentially repeal the law.

But as H.D. Palmer, deputy director of the state Department of Finance told KNX 1070, there is already legislation in place requiring Amazon to collect taxes on all out-of-state purchases.

“This isn’t a dynamic about taxes versus jobs, this is a dynamic where you have a corporation which, under their proposal, would like to be excluded from collecting taxes while expanding their physical presence in California.”

Palmer said the law is expected to garner an estimated $200 million in revenue for the state.

A coalition of nonprofit organizations recently threatened a boycott over the company’s opposition to the sales tax law, but there is no data confirming any significant rise in the number of Amazon accounts canceled in response to the boycott.

Comments (8)
  1. Karen says:

    Amazon – my only mesage to you is – collect sales taxes.

    The jobs you would add are low level positions. Everyone needs to pay sales tax and Amazon needs to start collecting it. I have no objection to paying sales taxes. Taxes are used for the benefit of the community.

    In fact, sales tax is not discriminatory. Everyone has the same tax rate and if you consume a lot because you are rich, then you pay more tax.

    I don’t like Amazon’s message that they are above the law.

  2. alg says:

    If the governor is anything, he is a deal maker. I do believe that if he is able to look at the facts, he would rather see people employed. Once he grants AMAZON, and they bring 7k jobs to california in the next two years, then other companies may do the same, meaning more employment, and the collection of more state income taxes.
    It would be stupid for the governor NOT to accept this deal.
    I suggest the governor adds a covenant to the new law, by adding the above deal. period.

  3. alg says:

    Karen must be a state employee. What she doesn’t know is how difficult it is to do all the paperwork from sales, and taxes. It means changing the software programming, and adding software to collect the taxes, and separate it from your revenue. This is not easy to do, while still running your website.
    It’s like Karen is sitting on some pedestal, and says let there be taxes on you.
    I don’t care how you do it, I don’t care how much IT COSTS YOU, just do it.
    That’s the real deal with most state workers. They don’t have any common sense.

    1. Karen says:

      I am not a state employee. I have two jobs in the private sector – one full time and one part time. One of my jobs is for a major computer consulting company so phooey to the problem of changing the software.

      Amazon will create 7000 jobs paying minimum wage. Alert the media. The state would make more with the tax revenues.

  4. Karen says:

    By the way, per the Census, CA’s population is 37,253,956. 7,000 (number of alleged Amazon jobs) / 37,253,956 = .000188. That is not even a 10th of a percent.

    Whoopie – what a lot of jobs this is adding (not!) but we would lose tax revenues for this exchange.

    I would never make this deal. Hopefully our government is not so stupid either.

  5. NoTax says:

    repeal the law.No sale’s tax over out of state purchase.

  6. kpmgkilledjane says:

    KPMG KPMG KPMG KPMG
    Tax Shelter Tax Shelter Tax Shelter Tax Shelter

    NO MAN CAN ASSOCIATE HIMSELF WITH KPMG WITHOUT DISGRACE (INCLUDING THE DUDE BELOW)

    Just remember what the great Thoreau said “no man can associate himself with the U.S. Government without disgrace”. KPMG is a prime example of Thoreau’s credo.

    Keep in mind anyone doing business with KPMG or the likes of Dennis Malloy and Michael Hamersley of Hamersley Partners both former KPMG partners, could end up being butt raped for life since it is a proven fact KPMG and its partners will lie about your activities to the Government causing you to be butt raped beaten and tortured in a U.S. prison and destroy the lives of your family members.

    It appears the dude below is not only destined to but will help put citizens in prison for a life of butt raping (America’s favorite form of punishment which occurs all day long in prison while the guards laughingly watch or worse) but pretends to act on favor and on behalf of clients. Do not believe him, he is a liar and a thief, proof, he works at KPMG.

    The only thing this dude likely cares about his bank account just like KPMG, Michael Hamersley and Dennis Malloy who lied so much about their former partners tax related transactions that one of them was put in prison to be violently butt raped beaten and tortured while the guards laughed and watched. Of course the Government went to the partner and told him the beatings and butt rapings would stop if the partner being butt raped daily would lie and cause others to receive America’s favorite form of punishment just like KPMG, Michael Hamersely and Dennis Malloy did.

    David Rivkin a former partner of KPMG lied, the government did not even put him prison as long as he plead guilty and lied about others, what a lying rat he was and in fact, the California board of Accountancy gave him his CPA back right away while revoking others CPAs who were never convicted of a crime like the lying rat David Rivkin was. Rivikin has no honor and should be ashamed of himself, liying and ratting out your clients should be a crime, oh yeah if you do it for the Government you are a hero, just ask the California Board of Accountancy.

    In fact the lies and deceit spouted by KPMG, Michael Hamersely and Dennis Malloy have been irrefutably proven to be just that lies. The Government’s own experts in a civil case against the butt raped partner testified that over 75% of his foreign currency trades initiated by the butt raped partner were profitable and generated millions in profits after fees and expenses, does that sound like tax fraud, KPMG, Michael Hamersley and Dennis Malloy??? Of course the Government expert’s explanation for the abnormally successful trading, was that the butt raped partner was either lucky or good (75% of the time, in reality over 90% of the trades were profitable for the butt raped partner and generated several million dollars in profits but why quibble).

    Last night the butt raped partner picked up 800 points at $1000 per point on the Swiss Franc, using charts, other indicators and the news, the Government would say don’t matter and the ass raped partner just got lucky again. See the Chart Below utilizing fractal calculus.

    Yeah who would have thought the liars and thieves in the Swiss government were going to peg the franc to the euro, except anyone who watches the news.

    In any event I digress, the butt raped partner prays to his god every day for death just so he does not have to remember the horrors of the U.S. prison system directly caused by the lies of Michael Hamersley of Hammersley Partners, Dennis Malloy and KPMG and dreams of taking a gun and blowing his brains out. Of course his girl friend Jane took the easy way out after not being able to cope with the public humiliation wrought upon her by the liars and thieves Michael Hamersley and Dennis Malloy, she killed herself in a violent and disgusting manner leaving her daughter motherless with a soulless broken down butt raped father.

    In fact, Jane’s daughter started her first day of kindergarten with no one caring, good work KPMG, Michael Hamersely and Dennis Malloy.

    No man can associate himself with the U.S. Government or KPMG without disgrace, execute don’t prosecute, it is far more compassionate, and Jane would still be alive today and Jane’s daughter would at least have one person in the world that cared about her since her butt raped partner father would have been blown away the first day the government sent a swat team to arrest him.

    And California State Board of Accountancy good work give the lying rat Rivkin his CPA while revoking the CPA of the butt raped partner (because he seemed angry) for tax fraud not withstanding 100% of the investments deemed fraudulent made millions in profits, good work, the government is just another word for liars and thieves.

    1. Taxman says:

      Theh author of this comment is former KPMG Tax partner, David Greenberg.

Leave a Reply