by Jack Lee
“This is just another tax grab!” CA Assembly bill 155 passed and now heads to the Senate. This bill would impose a sales tax equal to the statewide tax on online sales to Californian’s. This tax bill claims it will collect more than $1 billion a year, if it becomes law.
Currently the State sales tax rate is 8.25% and can range as high as 10.5% in some areas. AB155 would make it mandatory for online retailers, such as Amazon, that are doing business with Californian’s to collect the 8.25% tax for the State.
Currently brick and mortar (physical) stores must charge state and local taxes and according to the democrats, this bill would level the playing field. The measure passed 47-16 with the help of one GOP lawmaker.
Republicans overwhelming rejected the bill because they said it would invite lawsuits, drive business out of California, and get the state entangled in the messy task of regulating the Internet.
“This is just another tax grab,” said Assemblywoman Shannon Grove, R-Bakersfield.
Assemblyman Tim Donnelly, R-Twin Peaks, called the legislation “complete insanity,” arguing that it further discourages companies that already choose not to operate out of California directly.