A generic image of many stacks of coins
Markets

California governor to decide on one-year tax break for Amazon

California consumers would be wise to purchase goods during the next 12 months from online retailer Amazon.com ( AMZN ), which talked Golden State legislators into allowing it to hold off on collecting taxes during that time period, according to The Los Angeles Times.

But the final decision rests with Governor Jerry Brown, a Democrat who has not tipped his hand. Yet Brown does oversee the California state treasury, which one legislator estimated stands to lose roughly $200 million in revenue.

"Other states needing money will look and say, 'It wasn't a smooth process, but California is going to come out ahead,'" San Francisco tax attorney Robert W. Wood told The New York Times.

The breakthrough in negotiations, which occurred late Friday night, comes months after California lawmakers approved the so-called "Amazon tax," which mandated revenue collection from online retailers to California customers of the businesses that have California subsidiaries.

Enacted on July 1, that measure was resisted by the Seattle-based online retailer, which devoted efforts and resources to gathering signatures to put the issue on the ballot in June of next year. The company remains confident that voters will speak more loudly on the issue to overturn the law.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AMZN