New online sales tax bill could negate referendum

August 26, 2011

Lawmakers are launching a new effort to force more Internet retailers to charge California sales taxes as they try to short-circuit an effort by Amazon.com Inc. to overturn the sales tax law.

The Senate Appropriations Committee on Thursday made changes to AB155 to mirror most of the Internet tax measure Gov. Jerry Brown signed into law in June to raise $200 million for the state budget.

Amazon has spent more than $5 million so far to gather signatures to force a referendum to overturn that law.

The bill by Berkeley Democratic Sen. Loni Hancock would exclude companies with less than $1 million a year in sales.

She hopes to attract enough Republican support for a two-thirds majority vote that couldn’t be reversed at the ballot box.

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