Amazon says gets OK for Calif sales tax referendum

July 19, 2011

(AP) -- Amazon.com Inc. says the California Attorney General's Office has approved its petition for a referendum that would let voters decide whether to overturn a new law that forces online retailers to collect sales taxes in the state.

The law makes online retailers collect California by expanding what it means to have a physical presence in the state. The requirement now kicks in if an has a related company, such as a marketing arm, or affiliates in California.

The law is projected to help California collect an additional $200 million annually. Amazon says its referendum aims to support jobs and investment in the state.

To bring its measure before in the next statewide vote in February, Seattle-based Amazon must gather over 500,000 signatures by late September.

Explore further: Cash-hungry states eye online retail for tax revenue

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