Only a Few Hours Until New Amazon Sales Tax Starts in California

Ecommerce giant Amazon will begin collecting sales tax on purchases made in California at 12:01 a.m. PT Saturday. The grace period negotiated between Amazon and the state of California in September 2011 officially ends then, and the government will begin to collect taxes on items shipped to California, despite Amazon not having a physical presence in the state.

Depending on location, California residents currently pay 7.25% to 9.75% in sales taxes on purchases made in the state. Amazon currently collects sales tax in seven states and has deals in place to collect in six more beginning in 2013.

State officials estimate that the new law should bring in more than $300 million in the…
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