Amazon Makes Deal With California To Delay Collecting Sales Tax For One Year

The battle between Amazon and the state of California over whether or not the e-tailer should be compelled to collect sales taxes may be drawing to a close after the two parties appear to have come to a tentative agreement that would have the online megastore collecting taxes, but not for another year.

From the L.A. Times:

Under the deal, Amazon would delay collecting taxes until September 2012, Assemblyman Charles Calderon (D-Whittier) said. The new law had mandated that Internet retailers start collecting state taxes in July if they had offices, workers or other connections in California.

The deal leaves open the possibility that, should the U.S. Congress rule between now and July 2012 on how to collect taxes from online retailers, Amazon would have to start collecting taxes before next September.

“It’s a safe harbor for up to a year,” said Assemblyman Calderon. “If they can’t get Congress to act by next July, then they will start to collect the tax in September 2012. If by chance they get Congress to act, then that would trump the state law.”

Of course, there is still Governor Jerry Brown to deal with. The governor has not indicated whether or not he will support the deal made by the Assembly.

Amazon cuts deal on California sales taxes [L.A. Times]