Amazon ups the ante in Internet sales tax fight

Amazon is putting its money where its mouth is when it comes to trying to overturn a new California law that requires it and other Internet sellers to collect sales taxes on purchases by customers from the Golden State.

The online retailer reported to the California secretary of state's office that it had contributed $2.25 million to the "More Jobs Not Taxes" campaign to qualify a referendum for the June primary election ballot. The contribution brought Amazon's cumulative investment in the campaign since mid-July to $5.25 million. The referendum, if signed by about 505,000 registered voters as expected, would ask voters if they want to uphold the law, which took effect July 1, or repeal it. Amazon is asking for a repeal, claiming that the California law is an unconstitutional interference with interstate commerce.

(Aug 23)