Amazon gets OK for California online sales tax referendum

Amazon.com's home page.
Amazon.com's home page. Karen Bleier/AFP/Getty Images

Amazon.com 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 California.

The law makes online retailers collect California sales taxes by expanding what it means to have a physical presence in the state. The requirement now kicks in if an online retailer 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 Californians in the next statewide vote in February, Seattle-based Amazon must gather over 500,000 signatures by late September.

© 2011 The Associated Press.

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