California Takes Step Toward Taxing Online Purchases

With hopes of collecting possibly $1 billion a year in sales taxes, the California State Assembly approved a bill that would require buyers to pay taxes on Amazon and other online purchases.

NBC Los Angeles reports an assemblyman who supports the legislation doesn’t think the law creates a new tax, but just extends a current tax that the state should already be enforcing. The legislation now moves to the state senate.

The law would apply to businesses with a presence in the California, including those that work with organizations with sister companies in the state.

Do you think it’s fair to charge state sales tax on online purchases? If you live in a state with such taxes, do they discourage you from shopping online?

Amazon Tax Bill Passes State Assembly [NBC Los Angeles via Slashdot]