Amazon looks for sales-tax windfall from warehouses in 2 California cities

After years of wrestling with state officials about Internet taxation, Amazon finally agreed last fall to begin collecting sales tax from its California customers. But some of that tax revenue, perhaps millions of dollars a year, could wind up back in Amazon's pocket.

The potential windfall stems from Amazon's decision to build distribution centers in Patterson and San Bernardino. Amazon appears to be angling to grab a portion of the sales tax revenue that will flow to the two cities because of the warehouses. The company's stance irks some lawmakers and public-policy experts, who say cash-strapped cities shouldn't be coughing up tax dollars to curry favor with big employers. "Cities are induced to do a number of things -- they end up competing against one another for sales-tax generators and employers," said state Sen. Mark DeSaulnier, D-Concord. He's considering introducing a bill next year that would limit -- or ban altogether -- how much cities can share sales tax dollars.