California's Online Sales Tax Generating Millions



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(Sacramento, CA)
Tuesday, October 29, 2013

California’s Board of Equalization released the numbers today. They include state, local and district taxes. 40 percent of the revenue, or just over 100 million dollars, has gone to the state’s general fund. That largely matches projections from state budget analysts.

Some critics had predicted the tax would drive businesses to leave California. But Chas Alamo with the Legislative Analyst's Office says it’s hard to tell if that's been the case. 

“Business makes location decisions and decisions about where to expand or contract based on hundreds of different factors,” he said, “the cost of living, the price of housing, the cost of labor.”

Internet giant Amazon led the initial charge against the online sales tax pushed by Governor Jerry Brown in 2011. But it later came to an agreement with lawmakers. The company is now opening distribution centers around California - including one in San Bernardino, whose grand opening Tuesday was attended by the governor himself.

 

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