California Internet Sales Tax Law

The California Internet Sales Tax Law is in now in effect, and tax-free Internet shopping in California is over as the Golden State begins collecting its gold.

Commonly referred to as the "California Amazon Tax," revenue of 7.25 percent to 9.75 percent from California online purchases will now flow toward the California State Board of Equalization in Sacramento.

New California state and local government tax collections from Amazon.com transactions alone are expected to be $100 million during the first year of collection, with Internet totals hitting up to $317 million.

"The agency is ready," declared Jerome Horton, head of the state Board of Equalization, the tax agency enforcing the sales tax law effective September 15, 2012.

The new California online sales tax law means brick-and-mortar retail stores, who faced unfair competition from Amazon.com and other Internet retailers, have a fighting chance to survive, starting today.