Tuesday, September 6, 2011

Runner Says “Amazon Tax” Revenue Won’t Show Up

George Runner today issued the following statement in response to remarks by Governor Jerry Brown opposing a proposed deal to bring an estimated 7,000 Amazon.com jobs to California: “If the Governor truly believes the ‘Amazon Tax’ is going to generate millions in revenue for the state this year, he’s mistaken. Board of Equalization staff have determined that the projected $200 million in revenue will not materialize this year. “As of today we’re not aware of a single online retailer that has registered with BOE to collect sales tax because of AB 28X.

According to Board of Equalization staff, the number of out-of-state registrations in July 2011 was actually lower than July 2010. “Additionally, should a referendum qualify for the ballot, the law would be suspended until a vote of the people in June or November of next year. That would mean the ‘Amazon Tax’ would be a guaranteed money loser this fiscal year, since terminated affiliates will pay significantly less income tax. “The priority must be jobs: either we lose thousands of jobs by keeping the current law, or we gain thousands of jobs by encouraging online retailers like Amazon to invest in our state. If the Governor wants real and lasting budget revenue, he needs to grow jobs.” Elected in November 2010, George Runner represents more than nine million Californians as a member of the State Board of Equalization. For more information, visit www.boe.ca.gov/Runner.

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